The Philippine Securities and Exchange Commission (SEC) issued an alert to the general public about groups that are engaged in cryptocurrency investment and trading which are not authorized.
According to the Philippine agency, those who are involved in cryptocurrency scheme could face a fine or 21 years in prison, or even both.
“A maximum fine of 5 million pesos or a sentence of 21 years in prison or both await those who act as sellers, brokers, merchants or agents of entities dedicated to unauthorized investment plans,” the agency said in a statement.
Philippine authorities also cited three unauthorized crypto Ponzi schemes, one of which uses an Ethreum blockchain-based protocol: Forsage, RCashOnline, and The Saint John of Jerusalem Knights of Malta Foundation of the Philippines, Inc. Knights of Malta of Saint John of Jerusalem.
These three projects have the same particularity in common: they are Ponzi schemes by nature. According to the statement, in addition to lacking the necessary licenses, Forsage’s compensation plan resembles a Ponzi scheme, in which investors are paid with the contribution of new investors.