The Securities and Exchange Commission (SEC) has accused foreign exchange platform MiTrade of offering investment opportunities without the required licenses from the government.
As a result, the National Telecommunications Commission (NTC) has issued an order to block access to the website and app of MiTrade.
The SEC stated that MiTrade's operator had not registered as a corporation in the Philippines.
Furthermore, the operator had no license to sell or offer any form of securities, engage in buying or selling securities, operate as a broker or dealer, or establish or operate an exchange in the country, the commission also alleged.
In September 2023, the SEC warned the public against transacting with MiTrade. It also warned those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of MiTrade that they may be held criminally liable under the Securities Regulation Code and penalized with a maximum fine of P5 million and imprisonment of up to 21 years.
“The directive of the NTC will greatly help in preventing the proliferation of investment scams. The SEC and NTC will continue to work closely together to take similar actions on other platforms facilitating illegal investment-taking activities and other predatory financial schemes. We thank the NTC for supporting our campaign against investment scams and other predatory financial schemes toward the protection of the investing public,” SEC Chairman Emilio Aquino said in a press statement.
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