Investors have been warned by the Securities and Exchange Commission (SEC) of the Philippines not to conduct business with unauthorized cryptocurrency exchanges.
The regulator highlighted that the warning came in response to the bankruptcy of the cryptocurrency exchange FTX, which “left hundreds of thousands, even millions of unsecured creditors with little to no recourse in retrieving their money.”
Philippine SEC Issues a Warning Regarding Illegal Crypto Exchanges
The Philippine Securities and Exchange Commission (SEC) warned the public against doing business with unregistered cryptocurrency exchanges in a statement released on Friday.
SEC strongly discourages the public from doing business with unregistered and unlicensed cryptocurrency exchanges that are accessible and thought to be operating in the Philippines.
The recommendation came after the demise of the cryptocurrency exchange FTX, which, according to the Philippine SEC, “left hundreds of thousands, even millions of unsecured creditors with little to no recourse in retrieving their money.”
The regulator then went on to remind investors that in order to conduct business in the Philippines, a company must register with the SEC.
Virtual asset service providers (VASPs) that are authorized to do business in the Philippines are kept on record by Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines.
Investors are frequently cautioned by the central bank to avoid dealing with unregistered cryptocurrency service providers.