The Philippines classify cloud mining contracts as securities

In a statement issued Tuesday, the country's Securities and Exchange Commission (SEC) said cloud mining contracts should be classified as securities. Because when the Howey test was applied, the transaction stated that these contracts were accepted as deed because the process involved both deposits and profit expectations.

The SEC's decision stems from the fact that mining companies make high profits due to the lack of regulation in this area

Cloud mining is that if you are not spending your own energy for miners, you have a portion of the possibilities of a mining company through a contract, and try to earn crypt money and reputation money.

According to the Philippine SEC, the decision is that cloud mining firms, which currently treat as securities exports, contacted investors within the country to advertise to them, while some cloud mining companies say that the promise of profit is high because people do not make this land.

Those who submit unregistered cloud mining contracts in the country will be punished with imprisonment

For this reason, the regulator states that any party or vendor, broker, promotor or recruiters who are assigned to present unregistered cloud mining contracts in the country may be sentenced to up to 21 years in prison. The decision follows the tough stance of the Philippines over the last months of crypto-related activities.

The Philippines are also increasing their inspections on cryptographic currency projects

It is said that the securities regulator has also increased its scrutiny of the cryptographic currency projects under the existing securities rules, as it is stated that it is enacting legislation to regulate first money offers. In addition, the government in the Philippines is also discussing the issue of the introduction of heavier sanctions on crimes committed using crypto money.