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The Filipino SEC warns of cryptocurrency schemes

July 6, 2020

The Philippine Securities and Exchange Commission (SEC) has Warned the public about individuals and groups who conduct unauthorized cryptocurrency trading and investmentsAccording to a July 1st announcement.

The Filipino SEC warned of this who were involved in cryptocurrency schemes face a fine or 21 years in prison, or both. He explained that:

“A maximum sentence of 5 million pesos or a prison sentence of 21 years or both awaits those who act as sellers, brokers, dealers or representatives of companies that are dedicated to unauthorized investment plans […] The Bayanihan to Heal As One Act also punishes those who are involved in cyber incidents and who are using or exploiting the current crisis due to the COVID 19 outbreak to exploit the public through fraud, phishing, fraudulent emails or similar acts. ”

Three projects are warned

Filipino authorities too mentioned three unauthorized Ponzi crypto schemesone of which uses a protocol based on the Ethreum blockchain: Forsage, RCashOnline and Saint John of Jerusalem Knights of Malta Foundation of the Philippines, Inc. (Founding of the Knights of Malta by John of Jerusalem).

The Filipino SEC warns of cryptocurrency schemes
The Filipino SEC warns of cryptocurrency schemes

According to the Philippine Securities and Exchange Commission Both Forsage and RCashOnline do not have the necessary licenses to work. Therefore, they may not accept public investments or issue investment contracts or other forms of securities.

According to the Filipino SEC, Forsage is a crowdfunding platform based on the Ethreum blockchain. Active income is based on the number of recommended people and the membership fees that someone collects. With smart contracts in place, the Philippine SEC found that Forsage would then provide an investment contract that would have to be approved by the regulator. Forsage It is also not on the list of virtual cryptocurrency exchanges that are registered with the Central Bank of the Philippines.

The Foundation of the Knights of Malta, John of Jerusalem, although registered with the SEC, did not meet its reporting requirements and was revoked over 17 years ago.

As ponzi as you can

The three projects that are alerted have one thing in common: they are by nature Ponzi programs. According to the statement, in addition to the lack of the required licenses are missing Forsage’s compensation plan is similar to a Ponzi scheme, in which investors are paid with the contribution of new investors.

RCashOnline relies heavily on that Recruit members in exchange for high financial rewards rather than selling products.

The Securities and Exchange Commission warned of this if the registration of a company has been revokedas in the case of the Foundation of the Knights of Malta, John of Jerusalem, With the exception of billing purposes, any other activity is illegal.

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