July 5, 2020 | AtoZ Markets –The Philippines’ watchdog has issued a warning to investors to be aware of three cryptocurrency companies that might be a potential scam as they are not registered with the proper authorities.
The Philippines Securities and Exchange Commission (SEC) has flagged three cryptocurrency companies. The financial regulator highlights that none of the 3 crypto firms have the appropriate licenses or registration requirements in place, As a result, investors vulnerable to crypto scammers.
Philippines SEC warns investors against 3 crypto firms
In its warning, the Philippines SEC encouraged the public to exercise caution in dealing with Forsage, RCashOnline, and The Saint John of Jerusalem Knights of Malta Foundation of the Philippines, Inc. Headed by Lado Okhotnikov, Forsage is not duly registered with the SEC. Consequently, the firm lacks the necessary license to solicit, accept, or take investments from the public. The company does not also have permission to issue investment contracts and other forms of securities.
RCashOnline claims to represent Royale Business, however, the firm is likewise unregistered as a corporation or a partnership. It neither possesses a secondary license to solicit investments from the public. Meanwhile, the certificate of registration of Saint John of Jerusalem Knights of Malta Foundation has been revoked back in 2003. The firm lost its license due to noncompliance with its reportorial requirements.
Accordingly, the SEC warned the public against placing money in Forsage and RCashOnline. The regulator also warned against joining in any scheme operated by The Saint John of Jerusalem Knights of Malta Foundation. This is the latest list of cryptocurrency companies that do not meet regulatory requirements to operate in the country.
Crypto scams rise amid COVID-19 pandemic
The scams related to cryptocurrency around the world have grown significantly with the rise in mainstream exposure of crypto. As AtoZ Markets reported, the Federal Bureau of Investigation (FBI) had issued a warning saying fraudsters might be looking to unleash a surge in crypto scams amid the ongoing COVID 19 pandemic.
Singapore government revealed that the country had witnessed a significant uptick in ransomware attacks last year. Countries across the world are working on enforcing crypto regulations. Some, however, are already implementing strict laws to protect users from fraudulent crypto companies.
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