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UNREGISTERED CRYPTOCURRENCY EXCHANGES
SEC strongly warns and advises the public against transacting with unregistered and unlicensed cryptocurrency exchanges reachable and deemed operating in the Philippine

Date Posted: 23 December 2022

UNREGISTERED CRYPTOCURRENCY EXCHANGES

UNREGISTERED CRYPTOCURRENCY EXCHANGES

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By Philippine law, an entity is required to register with the SEC if they intend to conduct
business in the Philippines. SEC is the registrar and overseer of the Philippine corporate sector; it
supervis
es more than 600,000 active corporations and evaluates the financial statements (FS) filed
by all corporations registered with it. SEC also develops and regulates the capital market, a crucial
component of the Philippine financial system and economy. This
is consistent with the State Policy
of ensuring full and fair disclosure about securities, minimize if not totally eliminate insider trading
and other fraudulent or manipulative devices and practices which create distortions in the free
market.
Likewise,
it should be noted that under Philippine securities laws, persons, securities shall
not be sold or offered for sale or distribution within the Philippines, without a registration statement
duly filed with and approved by the Commission
1
. Moreover, no perso
n shall engage in the
business of buying or selling securities in the Philippine as a broker or dealer, or act as a salesman,
or an associated person of any broker or dealer unless registered as such with the Commission.
2
Moreover, under Philippine lendin
g laws, only corporations registered in the Philippines
are allowed to engage in granting loans from its own capital funds or from funds sourced from not
1
Sec. 8 of the Securities Regulation Code (2000)
2
Sec. 26 of the SRC.
more than nineteen (19) persons.
3
In addition, no lending company shall conduct business unless
grante
d an authority to operate by the SEC.
4 A number of unregistered cryptocurrency exchanges are deliberately targeting Filipino
investors and borrowers through online advertisements in social media and unlawfully allowing
Filipinos to access
their online platforms and permit the enrollment, creation, or registration of
client accounts through online means. They offer different products and schemes which are high
risk and sometimes fraudulent. The SEC reiterates its warning through its
“Adviso
ry against
Dealing with Non

Registered Foreign Entities, Organizations and Corporations.
5
” UNREGISTERED CRYPTOCURRENCY EXCHANGES