SEC extends drive vs illegal lenders, crypto providers
The Securities and Exchange Commission (SEC) has stopped the operations of seven online lending platform (OLP) operators and warned against five cryptocurrency platforms for supposedly failing to register with the regulator, thus exposing the public to risks like fraud.
In separate cease-and-desist orders issued on Aug. 15, the SEC financing and lending companies department directed Cash Konek, PesoSuki, Yescom Lending-Quick Cash Loan, Peso101-Fast Loans PH, Peso Cow-Mabilis Pera Loan, Swiftloan: Loan App Philippines and Pera Loan: Fast Cash PH to stop promoting or facilitating lending-related transactions.
This was because they had not registered with and received approval from the SEC, the commission pointed out.
Under Memorandum Circular No. 19, Series of 2019, financing and lending firms are required to disclose their respective OLPs, which the companies supposedly failed to do.
Apart from this, the SEC, chaired by Francis Lim, said their operations had likewise violated the commission’s moratorium on new OLPs imposed in November 2021.
“In light of the [companies’] continued unauthorized operation of [their OLPs], the commission finds it necessary to issue [cease-and-desist orders] in order to prevent further harm or prejudice to the public, and to safeguard the integrity of the regulatory framework governing lending companies,” the SEC noted in its orders.
In continuing to operate the unregistered platforms, the commission pointed out that the companies were exposing the public to potential risks, including abusive and unfair debt collection practices, unjust interest rates and violation of data privacy rights.
Crypto platforms, too
At the same time, the SEC flagged five unregistered cryptocurrency platforms that were currently operating, thus violating its recently issued rules on cryptocurrency asset service providers (CASPs).
These are BloFin, CoinW, DigiFinex, LBank and Pionex.
While crypto trading is still allowed in the Philippines, the SEC’s CASP rules, which took effect on July 5, state that platforms first need to register with the commission and obtain appropriate licenses before offering their services in the country.
The commission warned that engaging with unregistered CASPs exposed investors to various risks, including total loss of invested funds, absence of legal protection or recourse, fraud, identity theft, market manipulation and misuse of personal data.
Instead, the SEC encouraged investors to only trade with duly registered platforms and verify the registration and licensing status of entities offering crypto asset services.
They may also report unauthorized platforms to official SEC channels.
