The Philippine Securities and Exchange Commission (SEC) has issued a public advisory warning against engaging with several crypto trading platforms that are not authorized to operate in the country.

Among these flagged entities is the widely used decentralized trading platform dYdX. The SEC reported that these platforms have been soliciting investments and collecting funds from users under promises of returns, which fall under regulatory oversight.

Increased Risks Without proper registration, users may face risks including exposure to fraud and limited legal recourse in disputes.

Crypto Crackdown

The SEC noted that dYdX is not registered and lacks the necessary license to engage the public for investment solicitation. The commission stated:

“Records of the Commission show that DYDX IS NOT REGISTERED as a corporation, partnership, or one-person corporation in the Philippines and DOES NOT HAVE THE NECESSARY LICENSE AND/OR AUTHORITY to offer, sell, or distribute securities to the public.”

The SEC emphasized that all entities offering crypto-related services must first register and acquire appropriate licenses. Individuals acting on behalf of dYdX in any capacity within the Philippines may face criminal liabilities under the Securities Regulation Code.

Violators might incur penalties of up to ₱5,000,000 or face imprisonment up to 21 years, based on court rulings.

Other Unlicensed Firms Identified

In addition to dYdX, platforms such as Aevo, GTrade (Gains Trade), Pacifica, Orderly, Deriv, and Ostium have also been flagged as unregistered.

The SEC has encouraged the public to verify the registration of any company and report suspicious activities to its Enforcement and Investor Protection Department.