SEC Issues Advisory Against ‘Crypto Asset’

This article is also in Tagalog: SEC Naglabas ng Abiso Laban sa ‘Crypto Asset’ Trading Entity

By Shiela Bertillo

The Securities and Exchange Commission (SEC) released an advisory to the public to be cautious when transacting with individual or group of persons soliciting investments for and on behalf of crypto trading entity Crypto Asset. SEC stressed that Crypto Asset is also not registered as a Virtual Asset Service Provider (VASP) with the Bangko Sentral ng Pilipinas (BSP) and does not have a corresponding Certificate of Authority as a Money Service Business.

“The  public  is  hereby  informed  that Crypto Asset is  not  registered  with  the Commission and is not authorized to solicit investments from the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the Securities Regulation Code (SRC),” the commission stated.

Consequently, the commission’s Enforcement and Investor Protection Department added that it received information that people representing Crypto  Asset, headed by  its  President and CEO Janus Alfonsus Alvez Tisalona, are enticing the public to invest their money in the said entity with the promise of monetary rewards or profits.

According to its Facebook page, CRYPTO ASSET offers a “unique opportunity” for investors, wherein the minimum amount of investment is only Php 1,000 with four options to choose from. The money invested will then be used by Crypto Asset in its crypto trading through “unlitade platform and GPU mining farm activities.”

Based on their investment offerings, the four options investors can choose from are; “Silver”, with 5% profit in 7 days; “Gold” with 10% profit in 12 days; “Platinum” with 20% profit in 20 days; and “Executive” with 50% profit in just 40 days.

“Those who act as salesman, brokers, dealers or agents of the said entity in selling or convincing  people  to  invest  in  investment  scheme  being  offered  including  soliciting  or recruitment through the internet may be held criminally liable under Section 28 of the SRC and  penalized  with  a  maximum  fine  of  FIVE  MILLION  PESOS (Php  5,000,000.00)  or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC,” the commission warned.

Last month, during the BSP’s Cryptocurrency 101 virtual conference, BSP’s Melchor Plabasan and SEC Commissioner Kelvin Lester Lee stated that their agencies do not encourage people to invest in cryptocurrency and reiterated that the public must do their own due diligence before engaging. (Read more: BSP, SEC Do Not Encourage the Public to Invest in Crypto)

This article is published on BitPInas: SEC Issues Advisory Against ‘Crypto Asset’