Wahid Pessarlay
The Philippines Securities and Exchange Commission (SEC) has issued an advisory to the public warning about the offering of unregistered securities.
The latest warning was targeted at Zydex Trading, a firm believed to have links to companies that have come within the Commission’s radar. The SEC said Zydex Trading is affiliated with Sophia Francisco Holding and Cryptogix, entities already slammed with a cease and desist order.
The Philippines’ SEC noted that Zydex’s offering of “competitive returns” on investment amounted to an investment contract that required prior registration with the Commission. Zydex offered investors up to 90% profits within 30 days on their initial investments with the additional perks of referral bonuses.
“The records of the Commission show that Zydex Trading is not registered with the Commission as either a corporation or a partnership,” said the SEC. “Furthermore, Zydex Trading is not authorized to solicit investments from the public since it has not secured prior registration and/or license from the Commission as prescribed under sections 8 and 28 of the SRC.”
Members of the public are advised to avoid investing in the firm’s schemes, while brokers and promoters are warned to halt all promotional activities or risk criminal liability.
Bitpocket was next in the SEC’s crosshairs as the Commission warned that it is also not authorized to solicit investment from the public. Aside from flouting securities laws, the SEC further alleges that Bitpocket could be running a Ponzi scheme to defraud innocent investors.
The SEC urged investors to remain wary of such illegal securities offerings and encouraged investors to report instances of unlawful solicitation.
SEC flexes its regulatory muscles
Over the last 18 months, the Philippines’ SEC has gone hard against digital currency bad actors, especially those in the business of offering unregistered securities. Last year, the securities watchdog issued 70 public advisories against erring firms and spearheaded multiple raids on the business premises of repeat offenders.
Binance, the largest digital asset exchange in the world, received its fair share of flak from the SEC for failing to register and obtain registration from Filipino regulations.
The Commission’s latest move in its attempt to police the sector is a partnership with the University of the Philippines Law Center to research potential digital currency and fintech regulations. According to the partnership documents, the SEC is keen on exploring “innovation through regulation” for the local financial industry.
Watch: Turbocharging Philippines digitalization via blockchain
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