The Philippines’ Securities and Exchange Commission (SEC) has issued a warning for the crypto derivatives platform just created by Gemini Trust, which is controlled by the Winklevoss twins. The website, which provides what are considered securities in the Philippines, has launched without having been registered with the relevant authorities there, according to a notification published by them last week.
“GEMINI TRUST COMPANY, LLC. is not registered with the Commission and OPERATES WITHOUT THE NECESSARY LICENCE AND/OR authority to solicit, accept or take investments/placements from the public nor to issue securities,” according to the notification. “GEMINI TRUST COMPANY, LLC’s lack of prior registration with the Commission makes their actions of offering and/or selling securities in the form of derivatives ILLEGAL in violation of the provisions of the [Securities Regulation Code].”
In addition, the Southeast Asian authority urged the public not to invest on the unregistered platform and to withdraw any funds already invested. A fine of up to 5 million Philippine pesos ($89,826) or 21 years in jail awaits any salesperson, broker, seller, or broker who promotes or sells unregistered securities, such as Gemini’s derivatives products.
The Philippines SEC’s warning against Gemini was issued soon before to the Malaysian regulator’s flagging of Huobi Global for offering ‘unlawful’ services without any registration. In addition, Huobi Global CEO Leon Li was singled out in the Malaysian alert.
“The [Malaysian] SC has ordered Huobi Global Limited to cease its operations in the country, including disabling its website and mobile application on various platforms, such as Apple Store, Google Play, and any other digital application platform,” said the press release.
These alerts are similar to the deluge of warnings issued by regulators in 2021 concerning Binance and other cryptocurrency exchanges that had grown internationally without the necessary permission.