THE Securities and Exchange Commission (SEC) warned the 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 in the advisory published on its website.
“[These] entities have been identified as providing features that specifically enable access within the Philippine territory, such as 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 within the country without securing the necessary 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 such as buying, selling, and derivatives trading of crypto assets.
The commission reminded the public not to invest through unregistered platforms and to verify the registration and licensing status of entities offering crypto asset services.
Investors engaging with unregistered platforms face the risk of total loss of invested funds; lack of legal protection or recourse; exposure to fraud, identity theft, market manipulation, and misuse of personal data; and increased vulnerability to money laundering and terrorist financing, the SEC said.
The SEC added that the new list is in addition to 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 be subject to enforcement action,” the SEC said.
The five platforms had yet to respond to 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 is no ban on crypto trading.
It said that CASP rules require entities to secure the necessary registration and licenses before offering their services in the Philippines.
“We recognize the importance of a free, competitive market, but one that is responsibly regulated to protect investors and support the sustainable growth of the crypto industry in the Philippines,” the SEC said. — Revin Mikhael D. Ochave
