April 22, 2020 – The Philippines Securities and Exchange Commission (SEC) flags NEXUS P CAPITAL by GK MARKETING LIMITED for investment taking activities in the country that is not authorized.
Based on SEC’s investigation, Nexus P Capital promotes their investment activities through the domain, www.nexuspcapital.com. They offer a number of account types and credit token schemes, touting its lucrative returns for trading its web-based cryptocurrency and forex trading platforms.
Nexus P Capital claims their online trading platform can decrease the chance of unsuccessful trade. They also said that through their leverage scheme, investors can expect large gains from the small investments they deposit.
SEC said that while a Leverage System can increase the trading capacity of the trader by only putting down a fraction of the value necessary for the trade, companies also use the system as an investment strategy to finance their assets, business operations, and other ventures.
SEC also said Nexus P Capital uses the “Trading Bonus System”, similar to Cryptec (read SEC Advisory on Cryptec here) which tends to prevent investors from withdrawing their investments until they comply with the platform’s minimum trade volume requirements. If the investor fails to comply, his credit tokens will be forfeited and any losses deducted from their deposits subject to 20% withdrawal fees.
SEC also accused Nexus P Capital of using unclear and confusing language in their policies and agreements to confuse investors regarding the actual scheme.
Finally, because Nexus P Capital’s scheme involves offering the sale of securities to the public, they must obtain a license from the SEC to do so first. Nexus P Capital does not have that license, nor does it have a registration as a corporation or partnership in the Philippines.
Nexus P Capital also has their own digital exchange platform, which is not registered with the SEC. The Securities Regulation Code (SRC) does not authorize such exchanges that are not registered.
Additionally, Nexus P Capital does not appear in the list of licensed virtual currency exchanges (VCE) by the Bangko Sentral ng Pilipinas (BSP).
SEC advises the public to not invest or stop investing to any scheme offered by Nexus P Capital and GK Marketing Limited. Those who act on behalf of the company, enticing investors to put money to the platform will be penalized for violation of the Securities Regulation Code (SRC) and the Bayanihan to Heal as One Act.
Read the SEC Advisory here.
This article is published on BitPinas: PH SEC Advisory Against Nexus P Capital by GK Marketing Limited