Philippines SEC Teams Up With U.S. Counterpart to Combat Crypto Scams

The Securities and Exchange Commission of the Philippines (PH SEC) has teamed up with the Securities and Exchange Commission of the United States (US SEC) to combat cryptocurrency fraud and safeguard investors. The following are the main features of this collaboration:

1. Increasing Anti-Fraud Efforts

The PH SEC collaborated with the US SEC, the Asian Development Bank (ADB), and the International Organization of Securities Commissions (IOSCO) to protect the public against securities fraud and investment fraud. The objective is to improve their ability to recognize and prevent fraud, particularly in the cryptocurrency arena.

2. Keeping Up With Evolving Scammers

Scammers are getting more sophisticated as new technologies emerge. To stay ahead of them, PH SEC recognizes the need to continually improve its investigation and enforcement capabilities.

3. Investment Crime Workshop

PH SEC recently participated in an Investigation and Enforcement Training Workshop from August 14 to 17, 2023. This workshop, organized by IOSCO, aimed to bolster the enforcement skills of PH SEC personnel. Topics covered included investigations into securities-related crimes such as insider trading, market manipulation, off-market fraud, and crypto scams.

4. International Cooperation

IOSCO, established in 1983, is a global standard-setter for the securities sector. It promotes cooperation among international securities regulators for capital market development and stability. The collaboration with IOSCO enables PH SEC to tap into a global network of expertise.

5. Exchange of Information

On August 18, 2023, PH SEC signed a Multilateral Memorandum of Understanding (MMoU) with the U.S. SEC, IOSCO, and ADB. This MMoU facilitates cross-border cooperation, especially regarding information exchange, for regulatory enforcement concerning the securities market. This exchange of information is crucial for detecting and stopping fraudulent activities.

6. Addressing Digital Assets

In August 2022, discussions arose about the need for legislation specifically addressing digital assets to enhance PH SEC's regulatory capabilities. Such a law, if enacted, would grant the Commission greater authority in overseeing the digital asset market. However, the status of the proposed bill remains uncertain.

7. Past Successes

The collaboration builds upon past successes. Last year, the U.S. SEC commended PH SEC for its cease-and-desist order against Forsage, a fraudulent crypto pyramid scheme that swindled over $300 million from millions of investors worldwide. PH SEC's prompt action helped protect investors from this scam.

8. Future Protection of Investors

The collaboration with the U.S. SEC, ADB, and IOSCO is a step forward in ensuring the safety of investors in the Philippines. It reflects the commitment of both PH SEC and its international counterparts to combat fraud and maintain the integrity of financial markets.

9. Gratitude and Continued Efforts

PH SEC expressed gratitude to the U.S. SEC, ADB, and IOSCO for sharing their knowledge and experiences. This knowledge exchange will assist law enforcement agencies in the Philippines in their ongoing efforts to protect investors.

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In conclusion, the collaboration between PH SEC and the U.S. SEC, along with their partners, is a significant step towards safeguarding investors and combating crypto fraud in the Philippines. This partnership strengthens the ability of regulatory authorities to respond to evolving threats in the financial market, ultimately benefiting the investing public.