THE Securities and Exchange Commission (SEC) warned the general public in an Aug. 20 advisory against five cryptocurrency platforms it said lack the required registration.
The SEC listed Blofin, CoinW, DigiFinex, LBank, and Pionex within the advisory published on its website.
“[These] entities have been identified as providing features that specifically enable access inside the Philippine territory, resembling 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 inside the country without securing the essential registration and crypto asset service provider (CASP) license from the SEC,” the advisory said.
The SEC said its Memorandum Circular (MC) No. 4 on CASP rules and MC No. 5 on CASP guidelines, which took effect on July 5, apply to any person or entity offering, promoting, or facilitating access to crypto asset trading venues or intermediation services resembling buying, selling, and derivatives trading of crypto assets.
The commission reminded the general public not to speculate through unregistered platforms and to confirm the registration and licensing status of entities offering crypto asset services.
Investors engaging with unregistered platforms face the danger of total lack of invested funds; lack of legal protection or recourse; exposure to fraud, identity theft, market manipulation, and misuse of private data; and increased vulnerability to money laundering and terrorist financing, the SEC said.
The SEC added that the brand new list is along with ten crypto platforms flagged in a separate advisory dated Aug. 1 for operating without the required registration.
“Other platforms with similar features designed to onboard Philippine users without registration shall likewise be considered in violation of Philippine securities laws and will likely be subject to enforcement motion,” the SEC said.
The five platforms had yet to answer BusinessWorld’s e-mailed request for comment as of press time.
Amid its recent enforcement actions against unregistered platforms, the SEC clarified in an Aug. 14 advisory that there isn’t a ban on crypto trading.
It said that CASP rules require entities to secure the essential registration and licenses before offering their services within the Philippines.
“We recognize the importance of a free, competitive market, but one which is responsibly regulated to guard investors and support the sustainable growth of the crypto industry within the Philippines,” the SEC said. — Revin Mikhael D. Ochave