Cryptocurrency platform dYdX has been declared unregistered by the Philippine Securities and Exchange Commission, with a strict warning against investment solicitation and potential criminal liability for promoters.
The Philippine Securities and Exchange Commission (SEC) has issued a general advisory warning against dealing with several cryptocurrency trading platforms that are not licensed to operate in the country.
Among the entities flagged was the widely used decentralized trading platform dYdX. The Securities and Exchange Commission said it had received reports indicating that these platforms offer investment opportunities and collect money from users in exchange for promises of returns, profits, or benefits, which are activities that fall under regulatory oversight.
Without proper registration, investors using these platforms may face increased risks, including exposure to fraud and lack of recourse to the law in the event of disputes.
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The regulatory body stated in its notice that dYdX is not registered with the commission and does not hold the required license to solicit or accept investments from the public.
“The Commission’s records show that DYDX is not registered as a corporation, partnership or one-person company in the Philippines and does not have the necessary license and/or authority to offer, sell or distribute securities to the public, or to act as a broker or dealer in securities under Section 28 of the SRC.”
Supreme Education Council repeat Under the Crypto Asset Service Provider (CASP) rules, all entities providing cryptocurrency-related services to investors in the country must first register with the commission and secure appropriate licenses. Any person acting as a seller, broker, dealer, agent, promoter, recruiter, influencer, endorser or enabler of dYdX in the Philippines, online or otherwise, may face criminal liability under Section 28 of the Securities Regulation Code (SRC).
Violators may be punished under Section 73 of the SRC Law by a fine of up to 5,000,000 yen, imprisonment of up to 21 years, or both, depending on the court ruling.
Other unlicensed companies have been flagged
Besides dYdX, regulators also named Aevo, GTrade (also known as Gains Trade), Pacifica, Orderly, Deriv, and Ostium as unregistered platforms that are not authorized to offer or solicit crypto asset services or investment opportunities to Filipinos.
The Securities and Exchange Commission urged the public to check the company’s registration status and report any suspicious investment activities to the Enforcement and Investor Protection Department.
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