The Philippine Securities and Exchange Commission has issued a public warning against several crypto trading platforms that are not authorized to operate within the country.
Among those identified is the decentralized trading platform dYdX. The regulator stated that it has received reports indicating these platforms are offering investment opportunities and collecting funds from users with promises of returns, profits, or interest, activities that fall under its regulatory scope.
It cautioned that investors who engage with unregistered platforms face heightened risks, including potential fraud and limited legal protection in the event of disputes.
Regulatory Pressure on Crypto Platforms
According to the SEC, dYdX is not registered with the Commission and does not have the required authorization to solicit or accept investments from the public.
The regulator emphasized that its records show dYdX is neither registered as a corporation, partnership, nor a one person corporation in the Philippines. It also lacks the necessary license or authority to offer, sell, or distribute securities, or to operate as a broker or dealer under existing securities laws.
The SEC reiterated that under its Crypto Asset Service Provider rules, all entities offering crypto related services to investors in the country must first register and obtain the appropriate licenses.
It further warned that individuals acting as salespersons, brokers, dealers, agents, promoters, recruiters, influencers, endorsers, or facilitators for dYdX within the Philippines, whether online or offline, could face criminal liability under the Securities Regulation Code.
Penalties for violations may include fines of up to five million pesos, imprisonment of up to twenty one years, or both, depending on the court’s decision.
Other Unregistered Platforms Identified
In addition to dYdX, the SEC also listed Aevo, GTrade also known as Gains Trade, Pacifica, Orderly, Deriv, and Ostium as unregistered entities that are not permitted to offer crypto asset services or investment opportunities to Filipino investors.
The Commission urged the public to verify the registration status of any company before investing and encouraged reporting of suspicious activities to its Enforcement and Investor Protection Department.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
