The Philippines Securities and Exchange Commission has recently issued a public warning. The citizens of the country have been advised to steer clear of the securities tokens issued by Freedom Traders Club. The company does not have the necessary permits for them.
The SEC noted in an advisory that the company is promoting its cryptocurrency, the Ploutos Coin. Freedom Traders Club is marketing them as something that can be profitable by only holding the tokens.
The primary concern with the purchase of Ploutos Coins is the potential to make profits based on its projected growth in the market.
The marketing pitch has been successful. People have been buying the coin with the expectation of making immense profits with the price appreciation.
The SEC also reminded Freedom Traders about the advisory it had issued them earlier in the year. The SEC told Freedom Traders that some of the ICO projects follow the nature of securities tokens. This was not baseless as it is something defined in the Securities Regulation Code, Section 3.1.
It also added that anybody who recruits more people to invest in unregistered investments can face criminal charges. The Ploutos Coin counts as both an investment contract and securities token as per the definition by Philippine law.
It’s pretty simple why it can be considered so. There is money involved. There’s a common entity which sells the con. The people holding these coins are expecting to make profit. The profits ultimately arrive because of the efforts of someone other than the holder.
The Philippines SEC issued a similar warning back in May to Coin-Option.com for luring people to invest in cryptocurrencies.
The SEC classified Coin-Option.com as a Ponzi scheme since it promised immense profit over a short period of time. The commissions and profits are based on a binary network formation, much like a Ponzi scheme.
The Philippines Securities and Exchange Commission says that there’s no doubt Ploutos Coins are securities tokens. Their sale constitutes to the offering of investment contracts based on the definition of Philippine law.
The Freedom Traders Club has been advised that if they want to continue, they should register with the Philippines SEC. That is the only way they can acquire the adequate license and the permit to offer securities tokens to the public.
If the Freedom Traders Club and its associates fail to comply to the warnings, they could face serious criminal charges. They are liable to receive 21 years in jail or a fine of $94,000 or even both.
We provide the latest and most interesting news concerning everything Blockchain. Keep updated with our daily Podcast, Alexa Briefings of the days events, Crypto project ama´s, technical analysis and much much more. Subscribe to our newsletter and receive regular updates in the blockchain world.
URL:
https://blockverge.com/iTunes:
https://itunes.apple.com/gb/podcast/blockverge/id1412402400RSS Feed:
http://feeds.feedburner.com/Blockverge
