SEC issued an advisory against “play-to-earn” games and other non-registered foreign entities.
The Securities and Exchange Commission (SEC) recently issued an advisory against “play-to-earn” games and other non-registered foreign entities.
In an advisory, SEC encouraged the public to be careful when transacting or dealing with entities or corporations that weren’t licensed or registered in the Philippines.
The advisory came as the regulator has received numerous inquiries regarding the implications of transacting with non-registered foreign entities and corporations whose products or services were reachable in the Philippines through their website or online apps and platforms.
“By law, an entity is required to register and obtain a primary registration with the SEC if they intend to conduct business in the Philippines,” SEC said in an advisory.
According to SEC, a number of unregistered entities and corporations allowed Filipinos to access their online platforms and permitted the enrollment, creation, or registration of client accounts via online means despite having no registration or license to do business in the Philippines.
In some cases, Filipinos were even targeted by aggressive online advertisements in different social media networking platforms.
Based on SEC advisory, such unregistered online platforms include, but not limited to, the following:
- Foreign Currency (Forex) Brokers and Exchanges
- Digital Asset / Cryptocurrency / Virtual Asset Exchanges
- Decentralized Finance (DeFi) Investment Platforms
- Yield Farming / Staking Platforms
- Multi-asset / Multi-security Brokerage Companies
- Websites for Securities Token Offerings / Token Generation Events
- Illegal Investment Scheme websites
- Binary Options Trading apps
- Pay-to-Click / Captcha websites
- “Play-to-Earn Gaming” platforms
- Various fiat/cryptocurrency gambling websites
- Various cryptocurrency-related investment websites
SEC reminded the public to be vigilant and to do their due diligence prior to transacting or dealing with any entity.
Also, the regulator advised the public to avoid transacting with entities or corporations without any registration or license to do business in the Philippines to avoid losing their earnings.
You can read the full advisory here.