PSE warns vs blockchain schemes

MANILA, Philippines — The Philippine Stock Exchange (PSE) has warned investors against blockchain schemes, saying its name is even being used to solicit investments from the public.

In a recent circular, the PSE said it received reports that an individual has been going around representing herself as a member of a project team established by PSE for blockchain digital currency.

The individual is soliciting investments and inviting people to create an account through the supposed project team’s website.

According to the PSE, the individual guarantees investors hefty returns of 20 to 30 percent or $1,000 to $2,000 daily.

“The PSE reiterates that it does not sell cryptocurrencies and that its employees or agents do not promote for purposes of investment, any specific stock, investment instrument or cryptocurrency,” the PSE said in its advisory for the public.

The PSE reminds the investing public to exercise prudence and due diligence in dealing with social media accounts that purportedly offer investments and represent themselves as employees or agents of the exchange.

Both the PSE and the Securities and Exchange Commission (SEC) have been consistently warning the public against fraudulent investment schemes.

The SEC has even set up the PhiliFintech Innovation Office to monitor financial technology players in the country as part of its mandate to protect investors.

SEC chairman Emilio Aquino Jr. said fintech must not be used to scam investors or to launder dirty money.

Aquino said there is a need to strike a balance between promoting innovation and ensuring investor protection.

For cryptocurrencies alone, the SEC said these are very volatile and involve a higher degree of risk, making any promise of lucrative returns “truly ambiguous.”

The SEC also reminded the public that all entities soliciting investments from the public need the necessary licenses to offer securities for sale within the Philippines, as required under Republic Act 8799 or the Securities Regulation Code.

The SEC warned all individuals and/or entities involved in the unauthorized investment-taking activities of the strict penalties provided under the Securities Regulation Code (SRC) and other laws, rules and regulations enforced by the SEC.

The SRC, for one, punishes those who act as salesmen, brokers, dealers or agents with a maximum fine of P5 million or imprisonment of up to 21 years, or both.