The Philippines SEC has issued a warning to Gemini’s recently launched derivatives trading platform.
The securities regulator has accused the exchange of illegally operating without the necessary registration.
Filipino investors have been warned to stop investing in Gemini until it obtains the necessary registrations.
The new derivatives exchange went live earlier this month in 30 countries including the Philippines.
The Philippines Securities and Exchange Commission (SEC) has issued a warning to the Gemini Foundation for operating in the country without proper registration. The securities regulator has accused the Winklevoss-owned crypto exchange’s recently launched derivatives trading platform of violating local securities laws by improperly offering securities to Filipino investors.
Gemini May Face Severe Penalties For Securities Laws Violation
An advisory issued by the Securities and Exchange Commission of the Philippines earlier today took aim at Gemini’s new derivatives exchange. The securities regulator highlighted that the products offered by the platform involved securities, including derivatives like options and futures contracts. The SEC stated that the sale of such products is prohibited in the Philippines without prior registration with the Commission.
GEMINI TRUST COMPANY, LLC’s lack of prior registration with the Commission makes their activities of offering and/or selling securities in the form of derivatives ILLEGAL in violation of the provisions of the SRC.”
Securities and Exchange Commission of Philippines
The SEC accused Gemini of violating the Securities Regulation Code by offering securities in the Philippines without the necessary license and operating as a broker/dealer without the proper registration. The securities regulator has also taken issue with the derivatives platform’s advertisements of said securities to local investors. The Commission’s advisory urged Filipino traders to not invest their funds in the new derivatives exchange until it obtains the necessary licenses.
The Filipino regulator warned Gemini of potential criminal prosecution and a penalty of up to five million pesos ($90,000) or a penalty of 21 years of imprisonment or both. The derivatives exchange went live in 30 countries earlier this month, including the Philippines. News of the warning to Gemini came just hours after the top securities regulator of Malaysia publicly reprimanded Huobi Global and initiated enforcement action against the crypto exchange for illegally operating in the country.