Philippine SEC warns against unlicensed cryptocurrency exchanges in the wake of FTX crash
The Philippine Securities and Exchanges Commission stated that Filipinos cannot have access to unregistered stock exchanges. News Ho-ho, ho! Get a Limited Holiday Trait The Securities and Exchanges Commission (SEC), Philippines, issued an advisory to the public advising against unregistered cryptocurrency trading platforms that are operating in the country. The SEC warned that while it did not mention the FTX exchange in its warning, it said that the warning was based on “the recent collapse a large international crypto exchange”. It also cited the laws in the country and reiterated that all entities that intend to do business in the Philippines must register with the SEC. According to the SEC, many exchanges target Filipino investors via advertisements online and social media. The government agency pointed out that these exchanges “unlawfully allow” Filipinos to access their platforms, and allow them to create accounts online. The SEC stated that these exchanges “offer various products and schemes, which are high-risk, and sometimes fraudulent.” Related: Philippines launches training program to explore blockchain use cases. On Aug 4, the SEC criticized Binance’s crypto trading platform and warned local investors not to use it. According to the SEC the exchange is not licensed to solicit investment. The exchange remains positive that they will be able penetrate the country despite this. The Banko Sentral ng Pilipinas, the central bank of the country, issued a similar warning on Aug. 19. The BSP advised Filipino citizens not to use foreign virtual asset service providers that were not registered in their country or are located abroad. According to the central bank it would be difficult for consumers to enforce any consumer protection mechanisms or legal recourse when dealings with such businesses.