Urgent: The Philippines is escalating its campaign against digital currencies… after the recent crashes

In light of the escalating crises sweeping the digital currency market, regulators around the world are taking more escalatory measures against the crypto market due to its negative effects on the national economy, as assumed by some countries.

The escalation campaign on the part of the regulators comes after a series of major failures in the cryptocurrency market in the past weeks.

The Philippines issues a warning

The Philippine Securities and Exchange Commission on Tuesday warned against unlicensed cryptocurrency exchanges amid the FTX collapse.

The Philippine Securities and Exchange Commission confirmed that it is illegal to grant Filipinos access to unregistered exchanges.

Resolution details

The Securities and Exchange Commission (SEC) of the Philippines has issued an advisory to the public not to use unregistered digital currencies that operate within the country.

The SEC did not directly mention FTX, but said the warning comes after “the recent collapse of a major international cryptocurrency exchange.”

The authority cited in-state laws, and the government agency emphasized that any cryptocurrency entity that intends to conduct business within the state is required to register with the Securities and Exchange Commission.

illegal

The government agency also highlighted that the exchanges are currently “illegally” giving Filipinos access to their platforms and enabling the creation of online accounts.

The SEC wrote that these exchanges “offer various high-risk and sometimes fraudulent products and schemes.”

According to the SEC, a number of exchanges are targeting Filipino investors through advertisements online and through social media.

earlier warning

On August 4, the Securities and Exchange Commission (SEC) singled out cryptocurrency exchange Binance, warning local investors against using the cryptocurrency exchange.

On August 19, the Philippine central bank issued a similar warning to domestic investors.

The bank urged Filipino citizens to refrain from using foreign virtual asset service providers that are not registered locally and are located abroad.

According to the central bank, it will be difficult to implement any consumer protection and legal claim mechanisms when dealing with such companies.

Digital currency crashes

  • – The beginning came with the decline in the currency market due to fears of tightening by the US Federal Reserve, causing currencies to fall towards their lowest levels in about two years.

  • – By early June, the crypto market woke up to the collapse of one of the largest stablecoins, Luna UST, which fell by more than 99%.

  • – After several months, the crypto market was plagued by a new collapse, with the collapse and bankruptcy of the FTX currency and platform, amid news of the imminent collapse of the Genesis Foundation.

  • – In addition to the difficulties of withdrawing and freezing accounts in the largest digital platform for digital currencies, 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 bitcoin mining companies in the United States.

  • – Layoff campaigns hitting major cryptocurrency and cryptocurrency-related companies.

the decisions of the organizers

  • British Columbia has decided to halt new power connections to crypto miners, emphasizing prioritizing clean energy and job creation as the main reasons for suspending cryptocurrency mining operations.

  • “Cryptocurrencies carry huge inherent risks to our macroeconomic and financial stability, citing the recent collapse of FTX as an example,” said Shaktikanta Das, Governor of the Reserve Bank of India.

  • US Democratic Senator and Chairman of the Senate Banking Committee, Sherrod Brown, raised the possibility of banning digital currencies from the US financial market. Brown said that US federal agencies need to address the cryptocurrency market and “maybe” ban it after the major collapse of the US “FTX” company that specializes in the cryptocurrency market last month.

  • – US Treasury Secretary Janet Yellen said: “Crypto-asset activities may pose risks to the US financial system if their interdependence with traditional financial institutions or their overall scope of work grows without compliance with, or association with, appropriate regulatory rules.” Yellen added that recent developments In the crypto market, it is important for Congress and regulators to act on the recommendations of the report.”

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