The recent warnings to the public by the Securities and Exchange Commission (SEC) against several unregistered industry players do not constitute a ban on crypto trading, a virtual currency group said.
In an email to the Daily Tribune, Arlone Abello, founding chairman of Innovative Movement of the Philippine Association of Crypto Traders (IMPACT) said the SEC is only enforcing the country’s own law on registrations for investment instruments, brokers, and dealers.
“The local SEC’s move aligns with the US SEC’s approach of requiring crypto exchanges to register, not necessarily a full clampdown,” he said.
Abello, who is also the chief executive officer of Global Miranda Miner Group and a certified member of the Society of Technical Analysts, said the SEC assists in building a global community of responsible crypto traders and well-informed investors.
“Thailand’s recent decision to ban unregistered crypto exchanges is creating a trend in Southeast Asia of regulators taking action against unauthorized exchanges. This action sets a precedent that more crypto exchange registrations can be expected going forward,” he stressed.
These statements came after the SEC last week warned the public against investing through Coinmate Plus Earning Opportunity/CMP Crypto Trading for non-registration of the business and fake profits to investors under a Ponzi-like scheme.
Earlier this month, the local SEC had warned the public to also stop investing with crypto service providers, namely XM, Etoro, and SparkFX Bitcore.
Binance ban takes effect
These all followed the SEC’s advisory last November against investing through Binance app for also skipping the registration process.
Binance has become relatively more popular through its aggressive marketing on social media and availability at Google and Apple app stores.
Last 19 April, the SEC sent a letter to both technology firms to remove Binance on their apps for unauthorized investment solicitation activities.
“It appears that the operators of the platform are registered brokers/dealers overseas. But based on the commission’s database, the operator of the platform Binance is not registered as a corporation in the Philippines and operates without the necessary license,” SEC said.
While these moves by the SEC could stir prejudice or “chilling effect” against owning and trading crypto, Abello said some domestic traders are still active.
“In response to the Philippine SEC’s move, some traders are transferring funds to other regulated Philippine crypto exchanges like PDAX and Coins.ph that allow converting fiat to crypto,” he shared.
Ultimately, Abello deems the SEC’s move as beneficial to Filipinos who are seeking alternative sources of income.
“While increased regulation may be burdensome for exchanges, it will ultimately benefit Filipino traders and investors by providing more oversight, transparency, and consumer protections,” he said.