Philippine SEC Warns Gemini's Gemini Derivatives is Unregistered Security

The Philippine Securities and Exchange Commission (PSEC) has issued an announcement on its website warning the public not to invest in Gemini Derivatives, a product of crypto exchange Gemini, which has been available in some jurisdictions through the Gemini Foundation platform since May 1.

Under Philippine law, derivatives are securities and therefore require registration with the PSEC. However, Gemini lacks the necessary licenses and authorizations to operate in the Philippines. In a statement dated May 11, the commission highlighted that Salesmen, brokers, dealers or agents that sell or promote unregistered securities face a fine of up to 5 million pesos or 21 years’ imprisonment.

In its warning, the PSEC also mentioned the complaints brought against Gemini by the U.S. Securities and Exchange Commission (U.S. SEC) and the U.S. Commodity Futures Trading Commission (CFTC), quoting the SEC Chairman Gary Gensler's words when Gemini's lending program Gemini Earn was charged in January:

"Today's charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws. […] It's not optional. It's the law."

The platform Gemini Foundation is available in 29 countries, including the Philippines, but does not include developed economies such as the UK, US and EU.

(Source: CoinTelegraph)