The Philippines Securities and Exchange Commission (SEC) warns citizens against investing in companies that sell illegal investment products. The advisory was issued by the Enforcement and Investor Protection Department against various entities that all operated under the name, Cryptogix.
Sophia Fransico Holding OPC
Financial Consultancy Services
and Sophia Francisco Trading
Information by the SEC suggests that Cryptogix used social media to entice the public by promising 100% returns in under 90 days. A 5% commission for the people who attract new investors to put in money.
According to the SEC, the product that Cryptogix ordered qualifies as an investment product and must be registered with the SEC. It then urged people not to invest in Cryptogix since it breaches the extant securities laws of the Philippines.
Commission records show that CRYPTOGIX is unregistered as a corporation or even as a partnership. It is also not permitted to solicit investments from the public since it never secured registration and/or license from the Commission.
The SEC also warned against Crypto Marketers/Crypto Marketers Worldwide, entities that actively engage in attracting the public to invest in a scheme that offers returns of 2% every day as well.
The SEC also warns salesmen of such firms who help in selling and persuading people to invest in the scheme may face criminal liability with up to 21 years in prison.
The SEC said, “Those who invite or employ others to join in a venture as such or offer investments or securities to the people may face criminal liability or be penalized.”
Agencies that look over the capital markets across the world are turning up their heat in monitoring the digital assets agency. A heated debate in the space argues over the status of digital currencies since their issuance will potentially make them securities if we go by the conventional definition.
This debate is the bedrock of the US SEC cases against Ripple Labs over XRP tokens since 2020. The case has been twisted and turned numerous times now, but as it nears its end, enthusiasts wait with bated breaths for the court’s decision.