NTC orders blocking of forex platform

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The Securities and Exchange Commission (SEC) said its has requested the National Telecommunications Commission (NTC) to block access to the website of forex platform MiTrade as it does not have a license to do business in the Philippines.

The SEC said NTC has issued a memorandum directing all internet service providers to immediately block the websites and apps of MiTrade for violation of the Securities Regulation Code or Republic Act (RA) 8799, Revised Corporation Code of the Philippines and regulations enforced by the SEC.

MiTrade trades financial instruments from a wide range of asset classes such as foreign currency pairs, foreign shares, index funds, and commodity derivatives.

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RA 8799 requires prior registration with the SEC of any securities for public offering within the Philippines.

“This involves the filing of an application for registration and providing detailed information about the securities, including the issue price, use of proceeds of the sale, and nature of the securities,” the SEC said.

The SEC said the Securities Regulation Code further requires that the corporation issuing such securities must secure from the SEC a license to sell or offer securities to the public.

“Agents of the issuers must likewise register with the SEC,” it said.

“The operator of MiTrade was not registered as a corporation in the Philippines, and operated without the necessary license to sell or offer any form of securities, to engage in the business of buying or selling securities, to operate as a broker or dealer, or to create or operate an exchange in the country,” it added.

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