The Securities and Exchange Commission (SEC) has warned Filipinos against using unregistered cryptocurrency platforms after discovering that there are at least 10 websites offering crypto services without the proper licenses.
In an advisory dated August 4, the SEC said that unlicensed crypto platforms pose significant risks for investors. Filipinos could lose all their investments, have no legal protection, and become victims of fraud, market manipulation, and identity theft.
The agency added that unregistered platforms can be used for money laundering and terrorism. In accordance with laws such as the Anti-Money Laundering Act, Virtual Asset Service Providers (VASPs) are required to implement strict security such as customer verification, record keeping, and suspicious transaction reporting.
What is Cryptocurrency?
This is digital money used in online transactions. It is not held by a bank, but verified by blockchain technology using a peer-to-peer network. Without a registry, it is not monitored by the government, so security against money laundering is weak.
What should investors do?
Avoid trading or investing in unregistered crypto platforms.
Be careful with crypto promotions especially on social media and influencers.
Report suspicious activity to the SEC at email: epd@sec.gov.ph or eipd-cybercrime@sec.gov.ph.
If found to be in violation, the SEC can issue cease and desist orders, block websites, file lawsuits, and work with global platforms to remove illegal ads.
