With Binance ousted from the Philippines, traders based in the country now have to deal with higher trading fees and fewer crypto tokens to choose from, according to an executive working in the region.
On Dec. 14, 2023, the Philippines Securities and Exchange Commission announced a three-month countdown to a Binance ban. The SEC’s Kelvin Lee said back then that Binance “never bothered to register in the Philippines” and comply with regulations.
The country’s National Telecommunication Commission ordered local internet service providers to block the exchange on March 25. On April 23, the SEC ordered Apple and Google to block the Binance app from their stores.
Rose said that the Binance ban drives business to local exchanges. The executive believes that this has a significant positive impact on the local economy.
“This increase in business staying local will also help Philippine crypto businesses with raising global investment funding, another win for the Philippine economy,” Rose added.
However, the executive also recognized that there are “trade-offs.” While the ban might have positive effects, Rose recognized that Filipino traders would face higher trading fees post-ban.
The executive also said this may foster market participants’ confidence and encourage responsible industry innovation.
Overall, the executive believes there are also negative and positive implications. However, it is undeniably a “significant development” for crypto in the country, according to Villarante.
