Philippines Now Regard Cloud Mining Contracts as Securities
April 12, 2018
The Securities and Exchange Commission (SEC) of Philippines has warned citizens that cloud mining contracts will be regulated in accordance with the existing legislation for securities, as the statement published on April 10 says.
The institution reports, the Howey test has shown that cloud mining contracts are securities as they imply a process including fund investment for revenue generation.
The commission has added, the decision came as a result of many cases when individuals and legal entities were engaged in advertising and providing of cloud mining. Now the agency regards this as issuing unregistered securities which is a harsh law violation.
The regulator claimed, lawsuits can be filed against entities involved into unregistered cloud mining contract offering including traders, brokers, promoters and agents. By the existing legislation, the law breakers may meet a penalty of up to 21-year-imprisonment.
Remember, a bill was submitted in the Philippines’ parliament in March which implied toughening penalties for cryptocurrency-related crimes, while at the beginning of the year saw the country’s SEC drafting laws regulating cryptocurrencies and ICO to protect local investors.