The Philippines Securities and Exchange Commission (SEC) advises the public against dealing with Peak Finance. As the adoption rate of digital assets increases massively, several entities have emerged as investment platforms. One such entity is The Peak Finance, a so-called blockchain company offering attractive investment products. Nevertheless, the SEC of the Philippines issued a notice, noting that the platform is neither registered nor regulated by the government.
The SEC made the announcement via a press release posted on its official website, stating that Peak Finance had not received regulatory approval to provide investment products to the public. Furthermore, the financial watchdog noted that the platform is not registered with them and has not obtained any operating license.
In light of this, the financial regulator has advised the public to be cautious when dealing with people affiliated with Peak Finance.
“The public is further advised NOT to INVEST or STOP INVESTING in the investment program offered by the relevant entity or its representatives,” the SEC added.
Speaking further, the regulator mentioned that people promoting the unregistered and unlicensed entity could be criminally prosecuted under Section 28 of the Securities Regulation Code (SRC). These include agents, salespeople, resellers and brokers. According to the SEC, these individuals could face a maximum fine of PHP5 million, 21 years in prison, or both.
Additionally, the SEC says it will report the identity of individuals affiliated with the platform to the Bureau of Internal Revenue (BIR). He expects the Bureau to assess the appropriate sanctions and/or taxes. In conclusion, the SEC asked the public to send any information about the platform to the body’s Enforcement and Investor Protection Department (EIPD).
Philippines SEC Actively Combats Digital Asset Scams
According to reports corroborated by information on their website, The Peak Finance Consultancy Services claims to be an investment platform, offering individuals incredibly mouth-watering returns on different investment programs up to 500% return on investment in a year. The entity has also littered information about its products on its Facebook page.
The way it works suggests it’s a pyramid scheme that uses funds from new investors to pay off old ones. According to data obtained from its website, users will receive 500% interest on their “initial contribution” in BTC and other digital assets within a year. It also promises a 120% return on the “initial contribution” in six months on locked-in investments. Other investment products are also available.
The Philippines SEC remains on guard when it comes to fighting pyramid schemes and digital asset scams. The regulator has been active in the fight against these fraudulent entities. On June 11, the SEC and the Philippine National Police Cybercrime Enforcement Unit (PNP-ACG) arrested 19 people connected to the Decentra Ponzi scheme in Quezon City.
The adoption of digital assets has seen significant progress in the country. This increase has highlighted the urgent need for appropriate consumer protection measures in the industry. The financial authorities are trying to put these measures in place. More recently, the Bangko Sentral ng Pilipinas (BSP) announced that it would suspend license applications from virtual asset service providers for three years.
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