Binance Philippines Users Rush To Liquidate Holdings

Binance banner and a gavel

Following legal challenges in the Philippines, Binance, the main cryptocurrency exchange, is experiencing a chaotic moment as consumers hurry to dump their holdings at huge discounts. Meanwhile, the recent prohibition by the country’s Securities and Exchange Commission (SEC) has sparked a surge of activity among Binance investors, with reports showing significant USDT discounts and concerns about expensive on-chain costs.

Binance Philippines Users Liquidating Holdings

Binance, the top cryptocurrency exchange, has recently encountered a number of regulatory challenges, the most recent of which is a proposed ban by the Philippines SEC. Notably, as CoinGape Media previously revealed, the exchange also had a hiccup in Nigeria.

Meanwhile, after the SEC’s attempt to limit access to Binance in the Philippines, users have scrambled to remove their assets from the site, fearing long-term restrictions and uncertainty. The restriction, sparked by Binance’s inability to secure a license in the nation, has prompted investors to sell their assets at reduced prices, notably USDT, which is trading at a 5% to 7% discount on the Binance P2P marketplace.

According to Luis Buenaventura, an assistant vice president at GCash and co-founder of cryptocurrency exchange platform BloomX, sellers are giving USDT at a discount in order to unload their stockpiles in the face of regulatory pressure. Furthermore, customers are dealing with high on-chain fees, with some transactions costing more than $12, increasing the sell-off frenzy.

Uncertainty Looms Over Potential Future Moves

The governmental crackdown in the Philippines has placed doubt on Binance’s future in the nation, leaving users apprehensive about the platform’s accessibility and legality. Despite warnings from the SEC dating back to November, the new suspension has taken many users off guard, causing uncertainty and discontent in the cryptocurrency world.

Meanwhile, Rafael Padilla, legal director of Farcove Consulting in Manila, expressed worry about the legality and fairness of banning Binance’s website while allowing local exchanges to function freely. Padilla also underlined the need of clarity and legal remedy, implying that contesting the SEC’s judgment in court might determine the platform’s future in the Philippines.

However, as users negotiate the uncertainties surrounding Binance’s activities in the Philippines, questions remain regarding the platform’s capacity to overcome regulatory issues and recover investor trust. With the ban’s implementation still in its early stages, the next few days will undoubtedly bring further developments, altering the future landscape of crypto trading in the Philippines.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.