Two Licenses Required to Stop Philippine Crypto Ponzi Schemes
Philippine regulators identified guaranteed daily returns of 1% to 2% as the clearest red flag of a crypto Ponzi scheme. Platforms must secure both an SEC secondary license and a BSP VASP certificate to operate legally.
Key Takeaway
No SEC secondary license plus no BSP VASP certificate equals illegal investment scheme in the Philippines.
The Securities and Exchange Commission requires investment platforms to secure a Certificate of Permit to Offer Securities for Sale before soliciting public funds. Basic SEC incorporation doesn't authorize fundraising — it only grants legal personality. Offering investments without the secondary license violates Republic Act No. 8799, the Securities Regulation Code, according to regulatory guidance published by law firm Respicio & Co. on June 5.
BSP registration adds a second layer. Virtual asset service providers must hold a separate VASP certificate from Bangko Sentral ng Pilipinas to operate exchanges, platforms, or wallet services. The central bank recognizes cryptocurrencies as virtual assets but explicitly states they are not legal tender and carry no BSP backing.
Scammers bypass both approvals entirely. Red flags include recruitment-driven multi-level marketing structures that pay for adding downlines, third-party Android app downloads outside Google Play or Apple's App Store, and unregistered offshore exchanges. Republic Act No. 11765, the Financial Products and Services Consumer Protection Act, explicitly penalizes investment fraud, Ponzi schemes, boiler room operations, and deceptive investment solicitation.
Filipino investors lost billions to offshore platforms that looked legitimate but lacked BSP VASP certificates and SEC secondary licenses. PDAX and Coins.ph remain the only major BSP-licensed exchanges serving retail traders. Victims can file reports through the SEC Enforcement and Investor Protection Department's iMessage Portal or directly with the BSP Consumer Protection Department, which handles VASP and remittance agent fraud complaints.
Chainalysis estimated global crypto scam losses reached ₱1.05 trillion ($17 billion) in 2025. The SEC can freeze corporate bank accounts and issue cease-and-desist orders against unlicensed platforms operating after June 6, 2026.
🇵🇭 Filipino Impact
Filipino crypto investors can verify platform legitimacy by checking two public registries: the SEC's List of Corporations with Secondary Licenses and the BSP's List of Registered Virtual Asset Service Providers. Platforms lacking both approvals operate illegally and offer no investor recourse when funds disappear.
This article was written based on reporting from Respicio.
