THE Securities and Exchange Commission (SEC) has warned the public not to engage with unregistered and unlicensed cryptocurrency exchanges after the recent collapse of a large international cryptocurrency exchange.
According to the regulator, several unregistered cryptocurrency exchanges have been targeting Filipino investors through online advertisements on social media.
“They offer different products and schemes which are high risk and sometimes fraudulent,” the SEC said.
Previously, the commission had warned the public against such entities through an advisory entitled “Advisory against dealing with non-registered foreign entities, organizations and corporations.”
The SEC said the unregistered cryptocurrency exchanges offer platforms for the sale of unregistered cryptocurrencies, cryptocurrency conversions, issuance of token offerings, and offering of crypto-loans, among others.
Cryptocurrencies are deemed as securities that must be registered according to the law.
Under Philippine laws, an entity is required to register with the SEC if it intends to conduct business in the Philippines as the regulator is the registrar and overseer of the country’s corporate sector.
Securities are not to be sold or offered for sale or distribution within the Philippines without a registration statement duly filed and approved by the SEC.
Only corporations registered in the Philippines are allowed to engage in granting loans from their own capital funds as no lending company is allowed to conduct business unless granted the authority by the SEC.
“Always remember that in case of doubt as to whether or not it is safe to transact with an online platform or entity, always #CheckWithSEC if the corporation or entity is registered or not,” the commission reiterated.
The commission’s website also provides information on company registrations, registration statements, secondary licenses, advisories, investor protection, and investments. — Justine Irish D. Tabile
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