The Securities and Exchange Commission of the Philippines has cautioned people against using crypto exchanges that are not licensed.
In a public announcement, the SEC suggested that citizens should not engage with unregulated exchanges, which are reportedly operating in the country without being registered or regulated.
This warning follows the collapse of crypto exchange FTX, leaving many unsecured creditors with no legal means to recover their losses.
The SEC emphasized that it is obligatory for any company to register with the appropriate authorities before conducting business in the Philippines.
It also drew attention to the fact that unlicensed crypto exchanges are likely to involve high risk and potentially fraudulent activities.
Certain unlicensed exchanges have been using social media ads to solicit customers from the Philippines, which is a violation of Philippine law.
The BSP (Bangko Sentral ng Pilipinas) is the agency responsible for registering virtual asset service providers (VASPs) in the country.
