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Tuesday, April 16, 2024

SEC warns public vs. unregistered cryptocurrency exchanges

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The Securities and Exchange Commission warned the public against investing in unregistered cryptocurrency exchanges which were targeting Filipino investors.

It issued the advisory amid the recent collapse of several international cryptocurrency exchanges which left hundreds of thousands of investors with little recourse in recovering their hard-earned money.

The SEC said a number of unregistered cryptocurrency exchanges operating in the country were deliberately targeting Filipino investors and borrowers through online advertisements in social media. These exchanges offer different products and schemes which are “high risk and sometimes fraudulent”.

It said the unregistered cryptocurrency exchanges offer facilities and platform for investors to buy cryptocurrencies, convert cryptocurrency to another cryptocurrency and facilitate the issuance of unregistered token or coin offerings.

“Always remember that in case of doubt as to whether or not it is safe to transact with an online platform or entity, check with the SEC if the corporation is registered or not,” the corporate regulator said in a statement.

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The SEC said all entities intending to conduct business in the Philippines are required to register with the agency.

It said all securities should not be sold or offered for sale or distribution in the country without a prior registration statement filed with and approved by the SEC.

The SEC overseas about 600,000 active corporations in the Philippines.

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