The Securities and Exchange Commission (SEC) said the public should be careful when dealing or transacting with foreign firms soliciting investments online.
The SEC said it has received “numerous inquiries regarding the implications of transacting with non-registered foreign corporations and entities whose products or services are reachable in the Philippines through their website or online apps and platforms.”
The SEC said a number of these firms allow Filipinos to access their online platforms and permit the enrollment, creation, or registration of client accounts through online means despite having no registration or license to do business in the Philippines.
“In some cases, Filipinos are even targeted by their aggressive online advertisements in various social media networking sites like Facebook, YouTube or Instagram,” it said, noting that investments offered vary from foreign currency (forex) brokers and exchanges, digital asset/cryptocurrency/virtual asset exchanges, decentralized finance (DeFi) investment platforms, yield farming/staking platforms, multi-asset/multi-security brokerage companies, and various cryptocurrency-related investment websites, among others.
“By law, an entity is required to register and obtain a primary registration with the SEC if they intend to conduct business in the Philippines,” the SEC said.
“The public is reminded to be vigilant and to do their due diligence prior to transacting/dealing with any entity. The public is also advised to avoid transacting with corporations or entities without any registration or license to do business in the Philippines in order to avoid losing their earnings. If an entity or an activity is unlicensed or unregistered and is based abroad, you run the risk of not getting your money back once these are transmitted outside of the Philippines,” the SEC added.
The SEC said the public should alway check with the SEC’s website to see if the corporation or entity is registered or not.
