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Philippine SEC warns against unlicensed crypto exchanges

Philippine SEC warns against unlicensed crypto exchanges

Following the collapse of cryptocurrency exchange FTX, the Philippine government has issued a warning to investors in the country against using crypto exchanges without a license.

In addition to warning, advice was also given

Coinciding with the warning from the Securities and Exchanges Commission (SEC) in the Philippines, an advisory has also been issued against the use of unregistered cryptocurrency exchanges that do operate in the country. Within the warning, the SEC did not directly name the FTX exchange, but said the warning takes into account “the recent collapse of a major international cryptocurrency exchange.”

Citing the laws in the country, the government agency also reiterated that any entity planning to do business in the country must officially register with the SEC. They wrote the following:

The SEC is both the registrar and regulator of Philippine business; it monitors more than 600,000 active companies and reviews the Financial Statements (FS) filed by all companies registered with it.

Illegal Allowing Filipinos

A number of crypto exchanges are reportedly targeting Philippine investors through advertisements online and through social media. The SEC emphasized that many crypto exchanges are currently illegally allowing Filipinos to access their platforms and enable account creation online. According to the SEC, at least a large portion of these exchanges would offer various products and schemes that are high risk and sometimes even fraudulent.

An example of this would be Binance. Last August, they were singled out as an unlicensed exchange by the Philippine SEC. Despite this, the exchange remains positive that they will receive this license relatively soon. Despite all this, crypto as a slot continues to grow in the Philippines as well.

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