The Philippines’ Securities and Exchange Commission (SEC) has issued a warning against the crypto derivatives platform launched last month by Winklevoss twins-controlled Gemini Trust.
An Unregistered Crypto Derivatives Platform
According to the regulatory notice published last week, the newly launched platform markets and offer derivative products categorized as securities under local laws. Gemini did not seek any registration from the Philippines regulator to launch its platform there.
“GEMINI TRUST COMPANY, LLC. is not registered with the Commission and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR authority to solicit, accept or take investments/placements from the public nor to issue securities,” the regulatory notice stated.
“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 [Securities Regulation Code].”
Gemini launched its crypto derivatives exchange last month globally but outside the United States. However, the Philippines and dozens of other countries were among the regions where the platform went live. Known as the Gemini Foundation, the derivatives platform is operated by a subsidiary, Gemini Artemis.
2/ That’s not all, we will soon be introducing additional perpetual contracts, dated futures, and options trading. Stay tuned! https://t.co/xwIzR4ntlE— Gemini (@Gemini) May 18, 2023
The Southeast Asian regulator further advised the public not to invest on the unregistered platform or halt their investments if they have already made investments.
The regulatory notice clarified that anyone, including salespersons, brokers, dealers, or agents, selling or promoting unregistered securities, like Gemini’s derivatives products, will face a fine of up to 5 million Filipino pesos ($89,826) or 21 years imprisonment.
Another Era of Regulatory Warnings against Crypto?
The Philippines SEC’s warning against Gemini came shortly before the Malaysian regulatory flagged Huobi Global for offering ‘illegal’ services without any registration. Additionally, the Malaysian waning named Huobi Global’s CEO, Leon Li.
“The [Malaysian] SC has ordered Huobi Global Limited to stop its operations in the country, including disabling its website and mobile application on several platforms, such as Apple Store, Google Play, and any other digital application platform,” the warning stated.
Both these warnings resemble the barrage of regulatory warnings in 2021 issued against Binance and several other crypto platforms that were expanding globally without receiving proper authorization.This article was written by Arnab Shome at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.