SEC Issues an Advisory Against Dealing with Non-Registered Foreign Entities
The Philippine Securities and Exchange Commission (SEC) issued an advisory cautioning the public when dealing or transacting with fintech companies that are not licensed or registered in the Philippines.
The Commission reiterated that an entity is required to register and obtain a primary registration with the SEC if they intend to conduct business in the Philippines. Some of these non-registered foreign corporations allow Filipinos to register on their platforms even without licenses to do business in the Philippines. These corporations even roll out aggressive online advertising on prominent social media sites like Facebook or YouTube to attract users. The SEC mentioned that some of these unregistered platforms include Foreign Currency (Forex) Brokers and Exchanges, Digital Asset/Cryptocurrency/Virtual AssetExchanges, and “Play-to-Earn Gaming” platforms, among other platforms.
The SEC stressed that the public must remain vigilant when transacting/dealing with these kinds of entities. Additionally, the Commission stated that people must conduct their own due diligence in order to avoid losing their earnings. If these companies are unlicensed and based abroad, the risk of not getting one’s money back is high. In cases where earnings are placed in unregistered corporations or their platforms, the government can only “offer very limited protection” or in some cases “no protection” from any harm since jurisdiction is lodged in those corporation’s country of operation.
The full advisory can be accessed here.