Binance ban a boon to local crypto firms

Local crypto traders are now experiencing as much as four times higher transaction volumes as investors shift their tokens from Binance.

PDAX CEO Nichel Gaba told reporters that the company has seen a rise in transaction volume of up to 300 percent since the Securities and Exchange Commission (SEC) decided to ban Binance in the Philippines.

Gaba, however, said part of the increase can also be attributed to the improving adoption of cryptocurrency among Filipinos, who are scrambling for investment opportunities now that their pockets are recovering from the pandemic pain.

“We have seen an influx in users and a surge in trading activities, but hard to say if it is because of Binance or because of the market. I would say about four times more trading today than three months ago,” Gaba said.

As such, Gaba is standing by his earlier projection that the mass exodus of traders from Binance will bolster the volume of crypto transactions in the Philippines to at least $6 billion this year. He said the amount could go beyond that given how big of a platform Binance is.

Virtual asset service providers (VASPs) like PDAX are competing over the market share that will be left behind by Binance in a few days.

In 2023, the SEC discovered Binance was operating in the Philippines without a license, and this led the agency to impose a ban against the largest crypto platform in the world.

As a result, the National Telecommunications Commission directed all internet service providers (ISPs) to prevent access to the website of Binance. The agency is giving ISPs until the end of the week to comply with the order.

Based on records of the Bangko Sentral ng Pilipinas, there are 17 VASPs authorized to transact crypto in the Philippines. Of this bunch, 10 are active, including PDAX, and seven are inactive.