The Securities and Exchange Commission (SEC) of the Philippines, through its Enforcement and Investor Protection Department, has issued a cautionary notice to investors of Onecash Trading, an online cryptocurrency trading platform. Onecash Trading had previously promoted its services on Facebook, urging users to sign up via a sponsored link and pay an enrollment fee of One Thousand Pesos (Php 1,000). However, Facebook has since removed the website as part of its crackdown on cryptocurrency promotion.
In its warning, the SEC clarified that investment schemes involving either fiat currency or cryptocurrencies fall under the category of securities, which are subject to the regulatory oversight of the Commission. The SEC further emphasized that individuals or agents promoting Onecash Trading, or encouraging others to invest in its offerings, could face criminal charges for their involvement in the scheme.
The SEC’s statement is significant for two key reasons:
- It explicitly categorizes investment schemes like Onecash Trading (and others such as Optioment) as securities.
- More importantly, it makes clear that individuals involved in facilitating or promoting such Crypto-MLMs and investment schemes could be criminally prosecuted.
This announcement aligns with regulatory actions taken by authorities across various jurisdictions worldwide. It serves as a strong reminder to crypto-exchanges, brokers, and Crypto-MLM platforms that they must obtain proper licensing and regulatory approval to operate legally and avoid legal repercussions.