After the FTX collapse, the Philippine government warned investors within the country about using unlicensed crypto exchanges.
A warning against utilizing unregistered cryptocurrency exchanges operating in the Philippines was issued by the Securities and Exchange Commission (SEC). The SEC warned against “the recent failure of a large international cryptocurrency exchange,” without specifically mentioning the FTX exchange.
“SEC is the registrar and overseer of the Philippine corporate sector; it supervises more than 600,000 active corporations and evaluates the financial statements (FS) filed by all corporations registered with it.”
The SEC claims that several exchanges are using social media and online ads to specifically target Filipino investors. The government agency also highlighted that the exchanges are currently “unlawfully allowing” Filipinos to access their platforms and enable the creation of accounts online.
It wrote that these exchanges “offer different products and schemes which are high-risk and sometimes fraudulent.”The SEC issued a warning against using the Binance cryptocurrency exchange to local investors on August 4.
The exchange does not have a license to solicit investments, according to the SEC. In spite of this, the exchange continued to be optimistic that it would be able to enter the nation.
Similar advice was given to local investors by Banko Sentral ng Pilipinas (BSP), the nation’s central bank, on August 19. The BSP urged Filipino citizens to avoid utilizing foreign virtual asset service providers who are situated overseas and are not authorized to operate in the country.
The central bank claims that when dealing with such enterprises, it would be challenging to implement any consumer protection laws and legal remedies.
