SEC Warns Public Against Unregistered Investment Platforms

The Securities and Exchange Commission (SEC) has issued advisories against unregistered investment platforms, specifically HTS and its related entities.

According to the SEC, these platforms present themselves as digital asset exchanges offering trading, derivatives, wallet, and blockchain-related services. They promote their platforms through websites, social media, and mobile applications, allowing users to open accounts, deposit funds, and trade cryptocurrencies online.

The SEC said that such activities may constitute the offering and sale of securities under Section 3.1 of the Securities Regulation Code (SRC). However, HTS is not registered as a corporation or partnership in the Philippines, nor does it have the necessary license to offer securities or act as a broker or dealer.

The SEC has warned the public to exercise caution when dealing with unregistered online investment platforms and their representatives. Those who sell or promote these platforms in the Philippines may face fines of up to P5 million, imprisonment of up to 21 years, or both under Section 28 of the SRC.