The Philippine Securities and Exchange Commission (SEC) has released a public advisory cautioning against participation with several unauthorized crypto trading platforms, including the widely utilized decentralized exchange dYdX. The SEC highlighted that it has received reports of these platforms soliciting investments and collecting funds from users with promises of returns, which fall under its regulatory jurisdiction. Investors using these unregistered platforms may face heightened risks, such as potential fraud and limited legal options in case of conflicts. In its announcement, the SEC stated that dYdX is not registered with the commission and does not have the necessary license to solicit or accept investments from the public. The Commission clarified that records indicate DYDX IS NOT REGISTERED as a corporation or partnership in the Philippines and lacks the requisite authority to offer, sell, or distribute securities, or to operate as a broker or dealer according to Section 28 of the Securities Regulation Code (SRC). The SEC emphasized that under its Crypto-Asset Service Provider (CASP) Rules, all entities providing crypto-related services to investors in the country must first secure proper registration and licenses. Individuals who promote or support dYdX in the Philippines, whether online or offline, may also face criminal liability under Section 28 of the SRC. Violations can result in penalties under Section 73 of the SRC, including fines up to ₱5,000,000, imprisonment for up to 21 years, or both, depending on court decisions. In addition to dYdX, the SEC identified Aevo, GTrade (also known as Gains Trade), Pacifica, Orderly, Deriv, and Ostium as other unregistered firms prohibited from offering crypto-asset services or investment opportunities to Filipino residents. The SEC encourages the public to verify the registration status of companies and report any suspicious investment schemes to its Enforcement and Investor Protection Department.
