dYdX and Crypto Platforms in Hot Water as Philippine SEC Issues Major Investor Alert

Crypto platform dYdX declared unregistered by the Philippine SEC, with strict warning against investment solicitation and potential criminal liability for promoters.

The Philippine Securities and Exchange Commission (SEC) has issued a public advisory warning against engaging with several crypto trading platforms that are not authorized to operate in the country.

Among the flagged entities was the widely used decentralized trading platform dYdX. The SEC said it received reports indicating that these platforms have been offering investment opportunities and collecting funds from users in exchange for promises of returns, profits, or interest, activities that fall under regulatory oversight.

Without proper registration, investors who use these platforms may face increased risks, including exposure to fraud and a lack of legal recourse in case of disputes.

Crypto Crackdown

In its notice, the regulator stated that dYdX is not registered with the commission and does not hold the required license to solicit or accept investments from the public.

“Records of the Commission show that DYDX IS NOT REGISTERED as a corporation, partnership, or one-person corporation in the Philippines and DOES NOT HAVE THE NECESSARY LICENSE AND/OR AUTHORITY to offer, sell, or distribute securities to the public, or to act as a broker or dealer in securities under Section 28 of the SRC.”

The SEC reiterated that under its Crypto-Asset Service Provider (CASP) Rules, all entities offering crypto-related services to investors in the country must first register with the Commission and secure the appropriate licenses. Anyone acting as a salesman, broker, dealer, agent, promoter, recruiter, influencer, endorser, or enabler of dYdX in the Philippines, online or otherwise, may face criminal liability under Section 28 of the Securities Regulation Code (SRC).

Violators may be penalized under Section 73 of the SRC with a fine of up to ₱5,000,000, imprisonment of up to 21 years, or both, depending on the court’s ruling.

Other Unlicensed Firms Flagged

Besides dYdX, the regulators also named Aevo, GTrade (also known as Gains Trade), Pacifica, Orderly, Deriv, and Ostium as unregistered platforms that are not authorized to offer or solicit crypto-asset services or investment opportunities to Filipinos.

The SEC urged the public to verify a company’s registration status and to report any suspicious investment activities to its Enforcement and Investor Protection Department.