Philippines warns citizens of stock markets after FTX scandal

Philippines warns citizens of stock markets after FTX scandal

The Philippines Securities and Exchange Commission (SEC) has warned its citizens not to invest in unlicensed crypto exchanges in the country following the collapse of cryptocurrency exchange FTX.

SEC in the Philippineshas issued an advisory warning letter to its citizens about unregistered cryptocurrency exchanges operating in the country. In its warning, the SEC referred to the FTX exchange as “the collapse of one of the world’s largest international exchanges,” without naming it directly.

However, the SEC reiterated that any entity wishing to operate in the Philippines must first register, referring to the laws within the country.

“The SEC is both the registrar and auditor of the Philippines. This organization audits more than 600,000 active companies and reviews the financial statements submitted by these companies.”

According to the SEC, a number of exchanges are trying to attract the attention of Filipino investors through online ads and social media. The SEC also highlighted that the exchanges currently illegally allow Filipinos to access their platforms and create online accounts. The SEC stated that these exchanges are high risk and sometimes offer fraudulent products and schemes.

On the other hand, the Securities and Exchange Commission targeted Binance on August 4, warning its citizens not to invest in the cryptocurrency exchange. As is known, Binance currently does not have a license in the Philippines. However, Binance is hopeful that they will be able to operate officially in the country.

In addition, the Central Bank of the Philippines Banko Sentral ng Pilipinas (BSP) warned its citizens in a similar way on August 19. BSP had warned Filipino citizens to refrain from investing through platforms that are not locally registered and operate abroad. The central bank also said it would be difficult to enforce any consumer protection mechanisms and legal recourse when dealing with companies that are not registered with the SEC.

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