Philippines SEC Warns Against Investing in Gemini Derivatives

PSEC Issues Advisory on Gemini Derivatives

The Philippines Securities and Exchange Commission (PSEC) has cautioned the public against investing in Gemini's Gemini Derivatives product. This product is offered on the Gemini Foundation platform, which was launched in select jurisdictions on May 1.

Licensing Issues and Compliance

Under Philippine law, derivatives are classified as securities. Consequently, they must be registered with the PSEC to be legally marketed and sold within the country. Currently, Gemini does not possess the necessary licensing to offer its derivatives in the Philippines. This lack of compliance has prompted the PSEC to issue a formal advisory.

Potential Legal Consequences

The PSEC has highlighted significant legal penalties for those involved in the sale or promotion of unregistered securities. Individuals acting as salesmen, brokers, dealers, or agents for such products could face severe repercussions. The penalties include fines of up to 5 million pesos, approximately $89,826, or imprisonment for up to 21 years.

Public Awareness and Protection

By issuing this advisory, the PSEC aims to protect investors from potential financial harm linked to unregistered securities. The agency underscores the importance of ensuring that financial products comply with local regulations to safeguard investor interests.

Conclusion

The PSEC's advisory serves as a crucial reminder of the necessity for companies to adhere to local laws and regulatory requirements when offering financial products. Investors are urged to exercise caution and verify the legitimacy of investment opportunities before participating.