January 14, 2019. The Securities and Exchange Commission’s Enforcement and Investor Protection Department reiterated its advisory against Paysbook, which the government agency has found out to have changed its type of business but still continued with a similar type of operation from before.
The Commission has found out that Paysbook has changed its type of business – from a “partnership” to a “corporation”. In its registration, Paysbook said the purpose of the company is to engage in the businesses of e-commerce system services, online selling, website development, among others.
With that, SEC reiterates Paysbook is still not authorized to solicit investments from the public because it did not secure prior registration or even applied for any secondary license as required by the country’s Securities Regulation Code (SRC).
A company needs to acquire necessary licenses before it can be allowed to secure investments from the general public. In the case of investments by way of initial coin offerings, while proper rules are not yet in place, SEC released updated draft rules that will govern the said activity in accordance with the SRC.
The Commission also revealed that people affiliated with Paysbook have been sharing photos on social media where Paysbook officers are within the Commission’s premises, which the government agency said is implying that the embattled corporation’s issue with the Commission has been settled. A photo of Paysbook’s certificate of incorporation is also being circulated on social media, which the Commission thinks is being used as a proof of the company’s legitimacy.
With that, the Commission concludes that its 2018 Advisory concerning Paysbook is still in effect and that it does not find grounds to lift it as of yet. This is despite Paysbook’s change in its type of business – from “partnership” to “corporation” – as the SEC thinks the change in business type is just a “mere continuation and extension of the actual operations” of the company.
In a previous post in BitPinas, the SEC has gathered reports that Paysbook is offering online investments and enticing users to invest in a cryptocurrency called Indigen Coin. Members are set to earn money by logging and logging out while also recruiting other individuals in the scheme. Members are also set to earn Indigen Coins when they like, share, and comment on the Paysbook social media account.
The commission has warned investors to be wary of their money when investing in unregistered securities. The agency has reiterated how to spot potential investment scams:
- Unrealistic High Return on Investments
- Underlying Activity is not explained well
- Promoters discourage the investor from cashing out
- Promoters encourage investors to roll over their profits or infuse more money.
SEC also said it will hold anyone who acts as salesman, broker, dealer or agent of these companies criminally liable, prosecuted and penalized with a maximum fine of 5 million pesos or 21 years of imprisonment.
This article originally appeared at Bitpinas.com on January 14, 2019: Philippine Regulator Reiterates Advisory on Paysbook Corporation
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