NTC blocking unlicensed investment apps

BAGUIO CITY, Philippines — The National Telecommunications Commission (NTC) has ordered the blocking of access to the website and app of foreign exchange platform MiTrade, accused by the Securities and Exchange Commission (SEC) of offering investment opportunities without the necessary license.

“We thank the NTC for supporting our campaign against investment scams and other predatory financial schemes toward the protection of the investing public,” SEC Chairman Emilio Aquino said in a press statement.

It was the SEC which called the attention of the NTC to MiTrade’s illegal operations, including its violation of the Revised Corporation Code of the Philippines.

“The directive of the NTC will greatly help in preventing the proliferation of investment scams. The SEC and NTC will continue to work closely together to take similar actions on other platforms facilitating illegal investment-taking activities and other predatory financial schemes,” the SEC added.

Last February, SEC requested the NTC to order the blocking of access to the website and app of MiTrade after it was found actively employing promotional campaigns on various social media platforms to attract more Filipinos to engage in investment and trading activities using its platforms.

The operators of MiTrade appeared to be registered brokers and dealers oversees, and the securities and investments being offered likewise appeared to be registered in various countries, SEC also found out.

The Securities Regulation Code in the country requires prior registration with the SEC of any securities for public offering. 

Registration papers should include detailed information about the securities, including the issue price, use of proceeds of the sale and nature of the securities.

Companies issuing securities must secure from the SEC a license to sell or offer securities to the public.

According to SEC, the operator of MiTrade was not registered as a corporation in the Philippines and operated without the necessary license to sell or offer any form of securities, to engage in the business of buying or selling securities, to operate as a broker or dealer or to create or operate an exchange in the country.

In September 2023,  the SEC issued an advisory warning the public against transacting with MiTrade. It also warned those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, influencers, endorsers and enablers of MiTrade that they may be held criminally liable under the Securities Regulation Code and penalized with a maximum fine of P5 million and/or imprisonment of up to 21 years.