MANILA – The Securities and Trade Fee (SEC) has warned anew towards the Bitcoin Revolution, which presents itself as a cryptocurrency buying and selling program purportedly endorsed by authorities officers, businessmen, and even celebrities.
In an advisory dated June 16, the Fee urged the general public to keep away from or cease investing in schemes supplied by the Bitcoin Revolution or some other entities engaged in digital asset buying and selling and promising ridiculous charges of return with little or no danger.
“The general public should be conscious that cryptocurrencies are very unstable and the method of digital asset buying and selling is very speculative and entails a better diploma of danger and that the operations of such unregulated entities engaged in digital asset buying and selling are utterly unaccountable,” SEC stated in a press release Wednesday.
Underneath the scheme, buyers might supposedly earn as a lot as USD1,000 from a minimal funding of USD250 inside a day, a 300 % return on funding per day, or a complete of 9,000 % per thirty days.
Bitcoin Revolution additionally claims that a few of its merchants managed to change into millionaires in lower than two months by merely investing in its scheme that purportedly presents a singular automated buying and selling system or platform with a hit charge of as excessive as 99 % per transaction.
The scheme entails the providing and sale of securities, within the type of funding contracts, as a result of buyers needn’t exert any effort aside from to take a position or place cash within the Bitcoin Revolution as a way to derive revenue, in response to the SEC.
As such, the funding contracts will need to have been duly registered with the Fee whereas Bitcoin Revolution and its brokers will need to have secured the corresponding license to supply securities on the market to the general public, as required below Republic Act No. 8799, or The Securities Regulation Code.
Except for the lacking registration and licenses, the fast and unrealistically excessive return promised by Bitcoin Revolution presents a crimson flag for a Ponzi scheme, an funding rip-off the place buyers are paid utilizing funds contributed by the succeeding buyers, the SEC added.
The SEC has flagged the unauthorized actions of the Bitcoin Revolution earlier than in an advisory dated March 30, 2020.
Bitcoin Revolution stays unregistered with and unauthorized to solicit and settle for investments or placements from the general public nor to difficulty funding contracts and different types of securities, it stated.
The group additionally continues to handle its digital change platform with out the right registration with the SEC, in violation of the prohibition on the usage of unregistered change below The Securities Regulation Code.
As well as, Bitcoin Revolution nonetheless doesn’t seem within the listing of entities registered with the Bangko Sentral ng Pilipinas in accordance with BSP Round No. 944, Collection of 2017, which gives for the rules for digital forex exchanges.
“However, the Fee assures the general public that it repeatedly screens and oversees such entities and their actions in a method that it sees as correct as a way to stop the proliferation of scams and/or some other unauthorized or unlawful schemes within the nation,” the SEC stated.
The SEC additional warned all people and teams engaged in fraud of the strict penalties awaiting them for violating the legal guidelines, guidelines, and rules it enforces.
Those that act as salesmen, brokers, sellers, or brokers of fraudulent funding schemes, as an example, might face a most high quality of PHP5 million or imprisonment of 21 years or each below The Securities Regulation Code.
Those that invite or recruit others to affix or spend money on such ventures might likewise incur legal legal responsibility or be sanctioned or penalized in accordance with the Supreme Court docket’s choice within the case of SEC vs. Oudine Santos (G.R. No. 195542, 19 March 2014).
Furthermore, Republic Act No. 11469, or the Bayanihan to Heal As One Act, penalizes these taking part in cyber incidents that make use or reap the benefits of the coronavirus illness 2019 (Covid-19) disaster to prey on the general public by way of scams, phishing, fraudulent emails, or different comparable acts with two-month imprisonment or a most high quality of PHP1 million or each. (PR)
— to www.pna.gov.ph