Philippine Regulator Issue Warning to Cloud Mining Participants

regulator Philippines has issued a warning to mining operation cloud promote this business model without signing up to SEC. mining operation cloud involves contract hashpower pre-purchase of mining operations distance, and users purchase contract for a lifetime or limited time. users cloud mining then benefit of the income mining pool if their operations memberkan advantages and if not the contract can achieve breakeven or loses.

SEC explained that preliminary investigation has shown a lot of mining company cloud local and foreign ask this contract to the people who live in the Philippines. according to the regulator Philippines, this contract promised to pay for investors daily or weekly of the results of mining and companies that are not registered also provide affiliate commissions for each user merekru others. because the practice of this business, SEC stated that rule-based 26.3.5 par. 4 of regulation code Securities 2015, this sale is defined as investment contract. using Howey test, SEC explain these results confirm that investment this is the Securities. "because this scheme involves the sales of Securities to the public, SEC requires that the Securities offered must be registered properly and that the appropriate license and / or permission to sell Securities to the public issued to the company and / or its agents, in accordance with the provisions of section 8 of the SEC," sound statement SEC Philippines. Furthermore, the warning stated: "so, they which acts as a seller, broker, dealers, or agent of these companies in sell or convince people to invest in investment scheme offered by the company of mining cryptocurrency this, including the application and recruitment over the Internet without a license or authority of the Commission." the form of violations will be held criminal liability under article 28 of the regulation of code effects and punished with punishment a maximum of Twenty-one (21) years in prison or both in accordance with article 73 of the SEC.