Philippines Regulator Issues Warning Against Crypto Schemes
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The Securities and Exchange Commission (SEC) of the Philippines has just issued a warning against individuals and groups who trade and make investments in unauthorized crypto projects.

According to the warning, which was issued on July 1, people who participate in crypto schemes could face a fine, up to 21 years in prison, or both:

"A maximum fine of P5 million or imprisonment of 21 years or both await those who act as salesmen, brokers, dealers or agents of entities engaged in unauthorized investment schemes. The Bayanihan to Heal As One Act, also punishes those participating in cyber incidents that make use or take advantage of the current crisis arising from the COVID-19 outbreak to prey on the public through scams, phishing, fraudulent emails, or other similar acts."

The country's regulator has gone further, mentioning 3 specific projects, one of which is based on the Ethereum protocol: Forsage, RCashOnline and The Saint John of Jerusalem Knights of Malta Foundation of the Philippines, Inc.

According to the SEC, Forsage and RCashOnline do not have the necessary licenses, and therefore cannot receive investments from users or issue investment contracts or other types of securities.

The regulator claims the 3 projects are Ponzi schemes by nature since, apart from not having the necessary licenses, for example, Forsage, pays its investments money with the funds received from new investors.

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