PDAX Expects Trading Volume After Binance Possible Blocking in the Philippines
The Philippine Digital Asset Exchange (PDAX) is optimistic about its growth prospects amid the potential blocking of Binance, a major global digital currency exchange, by the Philippines’ Securities and Exchange Commission (SEC). PDAX sees this as an opportunity to expand its user base and business.
In November, the SEC announced plans to block Binance in the Philippines, cautioning the public against using the unregistered platform, which is not authorized to offer securities. PDAX CEO Nichel Gaba believes that with Binance potentially being banned, many users will seek a licensed alternative, positioning PDAX as a prime choice.
“Our strategy as a company is to focus on being the best alternative,” Gaba stated in an interview. He highlighted that all licensed virtual asset service providers (VASP) are currently processing transactions worth $2 billion to $3 billion. He anticipates this figure could double next year, not including activities on unregulated exchanges.
Regarding the regulatory environment for cryptocurrencies in the Philippines, Nichel Gaba mentioned that the Bangko Sentral ng Pilipinas (BSP) continues supporting financial innovations. He noted improvements in the BSP’s supervisory capabilities, with more complex requirements now in place.
This development follows the New Central Bank Act (Republic Act No. 11211), which brings crypto asset businesses under BSP supervision.
Further regulatory changes include virtual currency exchange policy amendments under BSP Circular 1108. These amendments have expanded the definition and scope of virtual currencies, introduced risk disclosures, set capital requirements based on a risk-based approach, and mandated internal controls.
PDAX has previously stated that cryptocurrency is gaining significant traction in the Philippines and is moving toward mainstream acceptance. This perspective, combined with the evolving regulatory landscape and the potential exit of Binance, sets the stage for PDAX and other VASPs to play a more prominent role in the Philippine cryptocurrency market.
The Securities and Exchange Commission (SEC) in the Philippines announced through an advisory on alleged non-compliance of Binance. SEC then immediately warned Filipino users about the possibility of blocking Binance in the Philippines.
They gave Filipino users were given three months to secure their assets with Binance and settle any transactions with the exchange because of the possibility of blocking the exchange in the country after three months.
Last November 2023 made some headlines in the crypto verse when they announced that PayPal USD (PYUSD) Stablecoin was available in the Philippines through their platform. They even noted that it could provide more favorable rates than the standard dollar rates on PayPal.
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