SEC Warns Public Against Crypto Schemer Paynance

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The Securities and Exchange Commission (SEC) issued an advisory against crypto-centered Paynance and a number of individuals or groups of persons claiming to represent the firm, the Commission specifically warned against a person called Diana Torrente. The SEC noted that the entity holds a DTI Certificate of Business Name Registration under the name Paynance Foreign Exchange Services.

The SEC stressed that the entity allegedly claims that it is earning through Crypto and Forex Trading

In a statement, the Commission noted that Paynance is offering investments to the public with a minimum amount of ₱500.00, with the promise of 8% daily earnings in just 25 days. (Read more: What is the Howey Test?)

According to their website, investors will be able to start investing upon signup. An investor can simply click “Funds” and cash-in/pay-in through the mode of payment provided, then the investor must upload their cash-in receipt through Paynance’s platform. Then, they may now choose a compensation plan they would like to avail. 

(Read more SEC advisories here.)

Further, the investors can also earn through Affiliate Commissions, namely: (1) Direct Referral Bonus of 10% at first level; 5% at the second level and 1% at the third level, and (2) Indirect Referral Bonus of 1% at the 2nd to 5 the level.

PAYNANCE allegedly claims that it is earning through crypto and forex trading. 

“The records of the Commission show that PAYNANCE/ PAYNANCE FOREIGN EXCHANGE SERVICES PAYNANCE FOREIGN EXCHANGE SERVICES PAYNANCE FOREIGN EXCHANGE SERVICES is not registered with the Commission either as a corporation or as a partnership. Further, it is NOT AUTHORIZED to solicit investments from the public since it has not secured prior registration and/or license from the Commission as prescribed under Sections 8 and 28 of the SRC,” the SEC said.

The Commission further warned those who act as salesmen, brokers, dealers, or agents or claim to act as such for PAYNANCE in selling or convincing people to invest in the investment scheme being offered by the said entity including solicitations and recruitment through the internet may be prosecuted and held criminally liable under Section 28 of the SRC and penalized with a maximum fine of five million pesos (₱5,000,000.00) or penalty of Twenty-one (21) years of imprisonment or both pursuant to Section 73 of the SRC.

The Commission has been actively issuing advisories to warn the investing public against fraudulent entities trying to entice the people with generous crypto offerings. Check out more SEC Advisories here.

Recently, Commissioner Kelvin Lester Lee stated that the Commission is closely studying the moves of the European Union (EU) in regulating digital assets–this includes cryptocurrency offers. He pointed out that although cryptocurrency became helpful during the pandemic it has also increased the potential misuse of it through money laundering and evading conventional anti-money laundering regulations.  (Read more: SEC Keeps an Eye on EU Rules on Crypto and AML)

On the other hand, Felipe Medalla, the new governor of the BSP, stated that he is not keen on regulating cryptocurrency and regarded it as based on the “greater fool theory.” (Read more: Incoming BSP Governor Dismisses Crypto, Not Keen in Regulating)

This article is published on BitPinas: SEC Warns Public Against Crypto Schemer Paynance

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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