With the escalating crises sweeping the digital currency market, regulators around the world are taking further escalating action against the crypto market, with negative effects on the national economy, as some countries assume.
The escalation campaign by regulators comes after a large series of failures in the digital currency market in the past weeks.
Philippines issues warning
On Tuesday, the Philippine Securities and Exchange Commission warned against unlicensed cryptocurrency exchanges amid the collapse of the FTX.
The Philippine Securities and Exchange Commission confirmed that it was illegal for Filipinos to be granted access to unregistered exchanges.
Details of the decision
The Securities and Exchange Commission (SEC) of the Philippines has issued advice to the public not to use unregistered digital currencies operating within the country.
The SEC did not directly mention the FTX, but said the warning follows "the recent collapse of a large international digital exchange."
The Authority cited laws within the State, and the Government agency confirmed that any private entity in digital currencies intending to do business within the State was obliged to register with the Securities and Exchange Commission.
Illegal
The government agency also highlighted that the exchanges currently "illegally" provide Filipinos with access to their platforms and enable the creation of online accounts.
These exchanges "offer different high-risk and sometimes fraudulent products and plans," the SEC wrote.
According to SEC, a number of exchanges target Filipino investors through online and social media advertising.
Previous warning
On August 4, the SEC singled out the Benance cryptocurrency trading platform, warning local investors not to use the cryptocurrency trading platform.
On August 19, the Central Bank of the Philippines issued a similar warning to local investors.
The Bank urged Filipino citizens to refrain from using non-registered foreign virtual asset service providers based abroad.
According to the Central Bank, it will be difficult to apply any consumer protection and legal claim mechanisms when dealing with such companies.
Cryptocurrency collapses
Philippines issues warning
On Tuesday, the Philippine Securities and Exchange Commission warned against unlicensed cryptocurrency exchanges amid the collapse of the FTX.
The Philippine Securities and Exchange Commission confirmed that it was illegal for Filipinos to be granted access to unregistered exchanges.
Details of the decision
The Securities and Exchange Commission of the Philippines has issued advice to the public not to use unregistered cryptocurrencies that circulate
The SEC did not directly mention the FTX, but said the warning follows "the recent collapse of a large international digital exchange."
The Authority cited laws within the State, and the Government agency confirmed that any private entity in digital currencies intending to do business within the State was obliged to register with the Securities and Exchange Commission.
Illegal
The government agency also highlighted that the exchanges currently "illegally" provide Filipinos with access to their platforms and enable the creation of online accounts.
These exchanges "offer different high-risk and sometimes fraudulent products and plans," the SEC wrote.
According to SEC, a number of exchanges target Filipino investors through online and social media advertising.
Previous warning
On August 4, the SEC singled out the Benance cryptocurrency trading platform, warning local investors not to use the cryptocurrency trading platform.
On August 19, the Central Bank of the Philippines issued a similar warning to local investors.
The Bank urged Filipino citizens to refrain from using non-registered foreign virtual asset service providers based abroad.
According to the Central Bank, it will be difficult to apply any consumer protection and legal claim mechanisms when dealing with such companies.
Cryptocurrency collapses
The beginning came with declines in the currency market owing to tightening fears on the part of the United States Federal to drop currencies towards nearly two-year lows.
By early June the crypto market woke up to the collapse of one of the largest stablecoins Luna UST, which fell by more than 99%.
After several months the crypto market was plagued by a new collapse with the collapse and bankruptcy of a currency and the FTX platform amid news
Several months later, the crypto market was plagued by a new collapse with the collapse and bankruptcy of the FTX currency and platform amid reports of the imminent collapse of the Genesis Foundation.
Besides the difficulties of withdrawing and freezing accounts with the largest digital currency platform Benance Queen.
A few days later, new bankruptcies were announced, beginning with the bankruptcy of Blockfrey, and following the bankruptcy days of Cor Mining, one of the largest bitcoin mining companies in the United States.
Dismissal campaigns that hit major crypto companies and cryptocurrency-related companies.
Regulators' decisions
- British Columbia decided to discontinue new energy connections for digital miners, emphasizing that clean energy and job creation were prioritized as the main reasons for suspending cryptocurrency mining operations.
"Digital currencies have huge inherent risks to our macroeconomic and financial stability, pointing to the recent collapse of FTX as an example," said Shaktikanta Das, Governor of the Reserve Bank of India.
U.S. Democratic Senator and Chairman of Senate Banking Committee Sherrod Brown raised the prospect of banning digital currencies from the U.S. financial market. Brown said U.S. federal agencies needed to address the cryptocurrency market and "possibly" block it after the major collapse of U.S. cryptocurrency specialist FTX last month.
US Treasury Secretary Janet Yellen said: "Encryption asset activities may pose risks to the US financial system, if their interconnectedness with traditional financial institutions or their overall scope of operation grows, without adhering to or associated with appropriate regulations.
US Treasury Secretary Janet Yellen said: "Encryption asset activities may pose risks to the US financial system, if their interconnectedness with traditional financial institutions or their overall scope of operation grows, without adhering to or associated with appropriate regulations.