Investing.com – As market crises escalate, regulators around the world are taking increasingly escalating action against the cryptocurrency market.
The escalation campaign by regulators comes after a string of busts in the cryptocurrency market in recent weeks.
The Philippines issues a warning
The Philippine Securities and Exchange Commission on Tuesday warned of unlicensed cryptocurrency trading amid the FTX crash.
The Philippine Securities and Exchange Commission has confirmed that it is illegal to give Filipinos access to unregistered exchanges.
Resolution details
The Securities and Exchange Commission (SEC) of the Philippines has issued a public advisory against using unregistered cryptocurrency exchanges operating within the country.
Within the warning, the SEC did not directly mention FTX, but did say that the warning was “the latest collapse of a major international cryptocurrency exchange”.
The authority cited state laws, and the government agency stressed that any entity intending to conduct business within the state is required to register with the Securities and Exchange Commission.
illegal
The government agency also pointed out that the exchanges are currently “illegally” giving Filipinos access to their platforms and allowing the creation of online accounts.
The SEC wrote that these exchanges “offer various high-risk and sometimes fraudulent products and schemes.”
“The SEC is the registrar and supervisor of the Philippine corporate sector; it supervises over 600,000 active companies and evaluates the financial statements (FS) filed by all companies registered with it.”
According to the SEC, a number of exchanges are targeting Filipino investors through online advertisements and through social media.
previous notice
On August 4, the Securities and Exchange Commission (SEC) singled out the Binance cryptocurrency trading platform and warned local investors against using the cryptocurrency trading platform.
According to the Securities and Exchange Commission, the exchange is not allowed to solicit investment. Despite this, the exchange remained positive as they would be able to penetrate the country.
On August 19, Banko Sentral ng Pilipinas (BSP), the country’s central bank, issued a similar warning to local investors.
The BSP has urged Filipino nationals to refrain from using foreign virtual asset service providers who are not registered locally and are located overseas.
According to the Central Bank, it will be difficult to enforce any consumer protection and legal redress mechanisms when dealing with such companies.
The currency collapses
- – The start came as the FX market fell on fears of tightening by the US Federal Reserve, causing currencies to fall to their lowest levels in two years.
- In early June, the cryptocurrency market woke up to the collapse of one of the largest stablecoins, Luna UST, which was down more than 99%.
- – After several months, the cryptocurrency market has been plagued by a new crash, with the collapse and failure of the currency and the FTX platform, amid news of the imminent collapse of the Genesis Foundation.
- – Difficulties with withdrawal and blocking of accounts in the largest digital platform for cryptocurrencies, Binance Coin
- – A few days later new bankruptcies were announced, starting with the bankruptcy of Block Fi, and a few days later the bankruptcy of Core Mining, one of the largest mining companies in the United States.
- – Layoff campaigns targeting major cryptocurrency and cryptocurrency-related companies
the decisions of the organizers
- British Columbia Decides to Shut Off New Energy Connections to Cryptocurrency Miners British Columbia has cited priorities of clean energy and job creation as the top reasons for halting cryptocurrency mining operations.
- Shaktikanta Das, Governor of the Reserve Bank of India, said: “Cryptocurrencies pose huge inherent risks to our macroeconomic and financial stability, citing the recent collapse of FTX as an example.
- Private cryptocurrency trading is a 100 percent speculative activity, and I still think it should be banned, Das said. cryptocurrencies.
- US Democratic Senator and Senate Banking Committee Chair Sherrod Brown has raised the possibility of banning digital currencies from the US financial market.
- Brown said US federal agencies need to address the cryptocurrency market and “maybe” ban it after the major collapse of the US cryptocurrency market specialist “FTX” last month.
- The Financial Stability Oversight Board said the interdependence between cryptocurrency companies and traditional financial institutions remains limited, but warned in an annual report that interconnections could grow rapidly, endangering the broader system.
- US Treasury Secretary Janet Yellen said, “Crypto-asset businesses may pose risks to the US financial system if their interdependence with traditional financial institutions or their overall business scope grows without joining or being associated with appropriate regulatory standards”. market, it is important that Congress and regulators act on the report’s recommendations.
