January 14, 2019. The Securities and Exchange Commission (SEC) renews its warning against Paysbook. The agency has found out that even though the company has changed its type of business, it continues a similar type of operation.
The Commission’s Investor Protection Division found out that Paysbook changed its type of business from “partnership” to “corporation”. The new filing suggests that its purpose is to engage in the businesses of e-commerce system services, online selling, website development, etc.
Even so, SEC reiterates Paysbook is still not authorized to solicit investments from the public. It did not register or even apply (and secure) for any secondary license as required by the country’s Securities Regulation Code (SRC).
A company needs the necessary licenses before it can solicit investments from the public. In case of initial coin offerings, SEC released draft rules that will govern the said activity.
According to SEC, Paysbook is also sharing photos where its officers are within the agency’s premises. Such acts, according to the Commission, imply that the corporation’s issue with the agency has been settled. Its members are also sharing a photo of Paysbook’s certificate of incorporation on social media. The Commission thinks that the company is using the photo to provide proof its legitimacy.
SEC concludes that its 2018 Advisory concerning Paysbook is still in effect and that it does not find grounds to lift it. Despite changing the company’s type of business, the Commission things this “change in business type “is just a “mere continuation and extension of the actual operations” of the company.
In a previous post in BitPinas, SEC gathered reports that Paysbook is offering online investments and enticing users to invest in a cryptocurrency called Indigen Coin. Members are set to earn by simply logging in and logging out of its Paysbook e commerce system. Money can also be earned if a person recruits individuals (even indirectly through his downlines) to the scheme in addition to the log in rewards and online activation codes. Members are set to earn Indigen Coins when they like, share, and comment on its social media account.
The Commission has warned investors to be careful of where they put their money when investing in unregistered securities. SEC mentions that an activity is a scam if it satisfies the following:
- 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 said it will hold anyone who acts as salesman, brokers, dealers or agent of these companies criminally liable. They will be 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