Three entities have received recommendations from the Securities and Exchange Commission (SEC) of the Philippines for breaking securities regulations. The organizations include PH-IGM, Gameloot, and Vertex Evo Trading, companies that the securities watchdog has banned for breaking the law.
The SEC stated in the public alert that Vertex Evo Trading, led by Carlos Jeff Bayan, reportedly asked for public investments to be made in virtual currencies. Due to the company's inability to register with the SEC, the Commission emphasized that it was not permitted for the company to take such actions.
“Based on the Commission’s database, the said entity is not registered with the Commission as a corporation, OPC, or a partnership. The entity likewise has not been issued by the Commission, any license or permit to sell or offer securities to the public or to conduct any activities regulated by the Commission.”
In a similar warning, the SEC noted that Gameloot "operates without the necessary license and/or authority" and is thus not permitted to offer investment contracts to the public. Gameloot previously advised the public that they could profit between 50% and 150%, with the option of an additional 10% on each referral bonus.
The securities watchdog said in its proposal that Gameloot worked like a Ponzi scheme, utilizing new investors' money to pay off existing investors. The general public is advised against participating in the plan, and anybody working as a salesman or broker for the firm faces up to 21 years in prison or a fine of 5 million pesos.
The last company the SEC publicly warned for operating in a regulatory gray area was PH-IGM. The advice said that PH-IGM promised investors returns of a remarkable 1000% after 200 days, which the SEC also referred to as having hallmarks of a Ponzi scheme.
The fraudulent and unsustainable "Ponzi Scheme" used in the offering and sale of securities in the form of investment contracts is NOT a registrable security. According to the SEC, "The Commission will not provide a License to Sell Securities to the Public to people or companies engaging in such activity or scheme.
The Philippines' securities authority has issued over 100 warnings against companies soliciting investments in digital assets without first registering during the course of the previous 12 months. The public advisories have been praised for putting a stop to industry bad behaviour and maybe protecting investors from losses.
Along with public warnings, the commission has collaborated with law enforcement to launch daring raids on the headquarters of errant corporations. The commission has also led the charge for more lucid laws governing virtual currencies in the Philippines.