The Securities and Exchange Commission (SEC) has raised a red flag over five new online entities that it said illegally offer crypto assets and services without a license from its office.
The SEC named Blofin, CoinW, DigiFinex, LBank, and Pionex, as “providing features that specifically enable access within the Philippine territory.”
The regulator said the five enjoy “options to register with a Philippine mobile number, accept Philippine peso through on-ramp methods (including banks or e-wallets), and make their platforms accessible within the country without securing the necessary registration and CASP license from the SEC.”
The advisory, which came amid the proliferation of online scams, was dated August 22, following the release of SEC rules governing crypto-asset service providers (CASPs). It said entities intending to sell or promote the sale of crypto-assets must first register with the SEC office and secure licenses.
Under the SEC rules, crypto-assets and crypto-asset securities may not be sold or offered for sale or distribution in the country without a disclosure document or registration statement, duly filed with and approved by its office.
Initial coin offerings (ICO) or the introductory sale of a cryptocurrency will also be treated as a sale of securities under the Securities Regulation Code and other relevant laws.
CASPs shall also be covered by the Anti-Money Laundering Act, giving the Anti-Money Laundering Council authority over them, according to the rules.
The SEC also requires CASPs to have a minimum paid-up capital of P100 million.
“Other platforms with similar features designed to onboard Philippine users without registration shall likewise be considered in violation of Philippine securities laws and will be subject to enforcement action,” the SEC said.
“Other platforms offering similar services to the Philippine public without registration or SEC approval are likewise considered to be operating in violation of Philippine securities laws,” it added.
It warned that engaging with unregistered platforms exposes the public to serious risks, including total loss of invested funds, absence of legal protection or recourse, exposure to fraud, identity theft, market manipulation and misuse of personal data, as well as increased vulnerability to money laundering and terrorist financing.
“The Commission reiterates that it shall take all necessary enforcement actions against violators, including issuance of cease orders, requests for blocking of access to websites and mobile applications, coordination with app stores and social media platforms to remove unauthorized platforms, and filing of criminal complaints under the SRC and the Financial Products and Services Consumer Protection Act (FCPA),” it said.
The SEC further warned the public from investing or trading with CASPs that are not registered with its office. It reminded the public that individuals can verify the registration and licensing status of a CASP using official SEC channels
