The Securities and Exchange Commission issued a cease-and-desist order against Payasian Pte. Ltd. Corp., a company engaged in selling cryptocurrency called Paya without the necessary license.
The SEC in an order issued March 20 directed Payasian to “immediately cease and desist under pain of contempt from further engaging in, promoting and facilitating selling and/or offering for sale securities in the form of investment contracts and/or other activities/transactions.”
The SEC also prohibited Payasian from transacting any business involving funds in its depository banks, and from transferring, disposing or conveying all related assets for the benefit of the investors.
The cease-and-desist order covers the corporation’s partners, operators, directors, officers, salesmen agents, representatives, promoters and all persons, conduit entities and subsidiaries claiming and acting for and on its behalf.
Payasian is an SEC-registered company but its registration did not include a license to sell or offer securities to the public, an activity that requires a secondary permit from the SEC.
Payasian, based on evidence gathered by the SEC’s Enforcement and Investor Protection Department, is engaged in the sale and offering of securities in the form of investment contracts without license.
The SEC in November warned the public against investing in Payasian.
Payasian, under its investment scheme, entices investors to buy Paya Coins and hold them for six months in order to receive a 30 percent additional “Paya Rewards.” It also offered referral rewards.
Payasian offered “Sharer Packages” starting at P8,145 for 1,040 Paya tokens with a maximum commission of P500 a day. One may invest as much P5,800,058 to buy 740,749 Paya tokens and receive a maximum commission of P10,000 a day.
The Securities Regulation Code said securities such as investment contracts should not be sold nor offered for sale or distribution in the Philippines without a registration statement filed and approved by the SEC.
“Without the registration statement duly filed with and approved by this Commission, Payasian’s act of selling/offering ‘Sharer Packages’ which are securities in the form of investment contracts constitutes a clear violation of Section 8 of the SRC. This warrants and justifies the immediate issuance of a cease and desist order,” the SEC said.