Philippine SEC Issues Warning Against Gemini Derivatives Investment

The PSEC’s Cautionary Tale

Recently, the Philippines Securities and Exchange Commission (PSEC) decided to take a stand against the investment shenanigans of Gemini’s new Derivatives product. Just to clarify, derivatives are not exotic fruits or dance moves; they are securities that require proper registration in the Philippines, and Gemini clearly skipped that step. They set sail on the Gemini Foundation platform on May 1, without the necessary licensing to cast their nets in Philippine waters!

The Risks of Unregistered Securities

Investing in unregistered securities can be like diving into a pool without checking for water first. The PSEC warns that anyone who dares sell or promote these unregistered goodies could face severe consequences—including a fine of up to 5 million pesos ($89,826) or 21 years behind bars. So, unless you can sprint faster than a speeding bullet, it might be wise to steer clear.

What’s in Store for Gemini?

Gemini’s offerings aren’t just limited to the Philippines. They recently launched the Gemini Foundation in a whopping 29 countries! However, guess who isn’t invited to the party? Yep, the U.S., the U.K., and even the entire European Union. The perils of the crypto world continue to surround Gemini as they wrestle with regulatory complaints from the United States Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission.

A Glimmer of Warning from the SEC

PSEC is not alone in their concern. SEC Chair Gary Gensler has something to say about Gemini’s behavior: “Today’s charges build on previous actions to make clear that crypto lending platforms must comply with our time-tested securities laws. […] It’s not optional. It’s the law.” It turns out crypto isn’t a lawless land after all—who knew?

The Community Ripple Effect

On a lighter note, while the PSEC was putting out fires over Gemini, they were simultaneously helping uplift farmers and indigenous peoples in Brgy. Maamot, San Jose, Tarlac, on May 12. The SEC-TEO got involved, assisting locals with their SEC registration processes while promoting financial literacy and investment scam prevention. Talk about multitasking!