The Securities and Exchange Commission (SEC) of the Philippines has recently declared that Gemini Derivatives, a cryptocurrency exchange, is an unregistered securities product. The SEC has ordered the company to stop its operations in the country.
Gemini Derivatives Violates Securities Regulation
According to the SEC, Gemini Derivatives has violated the Securities Regulation Code by offering securities products without proper registration. The company has been offering cryptocurrency derivatives trading services to Philippine residents without obtaining the necessary licenses from the SEC.
SEC Orders Gemini Derivatives to Cease Operations
As a result of the violation, the SEC has ordered Gemini Derivatives to stop its operations in the Philippines. The company has also been ordered to pay a fine of PHP 8 million (approximately $160,000 USD).
Gemini Derivatives Responds to SEC Order
Gemini Derivatives has responded to the SEC order, stating that it is committed to complying with all applicable laws and regulations. The company has also stated that it will work with the SEC to resolve the issue.
The SEC’s order against Gemini Derivatives is a reminder that cryptocurrency exchanges must comply with securities regulations in the countries where they operate. Failure to do so can result in fines and legal action. It is important for cryptocurrency exchanges to obtain the necessary licenses and registrations before offering their services to the public.