The Philippines Securities and Exchange Commission (SEC) issued an advisory on Cryptocurrency Cloud Mining Contracts that applies the Howey Test to classify these contracts as securities, the SEC outlined April 10.
Cloud Mining contracts fall within the purview of securities law because they are “investment contracts,” whereby investors stake the mining capacity of a remote datacenter through the contract, which can itself then further be traded.
Applying the 71-year old Howey Test, this qualifies as an investment in a “common enterprise,” in which investors are led to “expect profits” that are “generated from the efforts of others.”
Read more:
https://cointelegraph.com/news/philippines-sec-demands-crypto-cloud-mining-contracts-to-be-registered-as-securities