The Philippines’ securities regulator has issued a warning to investors to be aware of three cryptocurrency companies that might be a potential scam as they are not registered with the proper authorities. The Philippines Securities and Exchange Commission (SEC) flagged three cryptocurrency firms, including Forsage, RCashOnline, and The Saint John of Jerusalem Knights of Malta Foundation of the Philippines, Inc. The financial regulator noted that none of these three companies have the appropriate licenses or registration requirements in place, leaving investors vulnerable to being scammed.
SEC asks investors to remain cautious of these crypto companies.
The Philippines Securities Exchange and Commission, in its warning, urged investors to be cautious of the three crypto companies. Under the Securities Regulation Code, anyone who engages in unlawful investment activity faces sentences of up to 21 years in prison, in addition to a fine of up to P5 million. The crypto company Forsage, founded by Lado Okhotnikov, is not registered with the proper authorities and therefore does not have the legal standing to solicit investments or sell cryptocurrency investment products. According to the regulator, the other crypto company, RCashOnline, is not even constituted as a partnership or corporation.
This is the latest list of cryptocurrency companies that do not meet regulatory requirements to operate in the country.
Crypto scams continue to rise amid the global pandemic.
The scams related to cryptocurrency around the world have grown significantly with the rise in mainstream exposure of crypto. Earlier, the Federal Bureau of Investigation had issued a warning saying scammers might be looking to unleash a surge in crypto scams amid the ongoing COVID 19 pandemic. Singapore government revealed that the country had witnessed a significant uptick in ransomware attacks last year. Countries across the world are working on enforcing crypto regulations, with some already implementing strict laws to protect users from fraudulent crypto companies.