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Crypto Investment Firm Promising 200% Returns Slapped Down in Phillipines

Last Updated March 4, 2021 5:05 PM
Dennis Mangoli
Last Updated March 4, 2021 5:05 PM

The Filipino Securities and Exchange Commission has issued an advisory warning investors against investing in Onecash Trading. Onecash Trading claims to be a reliable digital currency trading platform that is mainly targeted at Filipino Investors. Looking at the site, it claims to educate both existing and new crypto traders on how they can venture into digital currency trading. The site seems to be riding on the rising popularity of cryptocurrencies in this country.

On the advisory, the commission said that Onecash Trading claimed to offer investors returns of up to 200% within one week. The advisor further states that there is asocial media link on Onecash Trading’s social media pages that investors can use to sign up on the website by paying a deposit of PHP 1,000(USD 50). As of writing, Onecash Trading’s Facebook and Twitter pages couldn’t be accessed.

There are three ways through which investors can invest in this platform. One can opt to become a trader. Onecash Trading states that traders can earn as much as 25% every week on the capital invested. The second option through which investors can earn money on this platform is by becoming miners. Looking at the site, it states that you can become a miner instantly by “pushing Buttons” and earning “crypto credits”. What these “buttons” are or what type of “credit” this is is quite fuzzy. Finally, the platform claims that investors can earn passive income by becoming affiliates and building teams. The platform further states that affiliates stand to get passive income up to the 10th level.

SEC has warned the public from investing in this platform and said that these investment schemes are subject to regulatory approval. SEC further informed the public that Onecash Trading hadn’t received any approval or license from the Commission as required by law under Section 8 of the Securities Regulation Code (SRC). This section states that securities shall not be offered for sale or distribution in the Philippines without a registration statement that has been filed and approved by the Commission.

On Onecash’s Trading site, there is no mention or posting citing any approval or licensing from the SEC. There is a terms and conditions section that briefly informs potential investors about the risks involved in this scheme. Under the Securities Regulation Code of the Philippines, entities that engage in trading of securities ought to receive their licensing and approval from the SEC. This ensures that everyone involved in the scheme is protected. Virtual currencies are considered to be securities in the Philippines. Trading or selling them requires approval. Individuals who sell these securities also need to be licensed by the Commission.

Entities found guilty of contravening the Securities Regulations Code (SRC) stand to be fined an amount of up to PHP 5,000,000 (about USD 100,000) or imprisonment of not less than seven years and not more than twenty-one years. This has been clearly stated on Section 73 of the SRC.

The Commission also warned the public against inviting people to join the platform. Members of the public found inviting others stand to be criminally prosecuted. Apart from this, their records will be handed over to the taxman so that appropriate penalties and taxes may be calculated.

A hotline was provided on the advisory that the public can use to contact the Commission if they need more information concerning the site. As of writing, there hasn’t been any official response from Onecash Trading.

Featured image from Shutterstock.