The Securities and Exchange Commision (SEC) of the Philippines has recently called the OneCash Trading platform a scam in a warning which has been released this week. OneCash Trading is a cryptocurrency trading platform which has been known for offering returns which can get up to 200% in two months.
What Is OneCash Trading?
OneCash is a cryptocurrency financial platform which offers the users the chance to invest in it and to receive up to 25% weekly. The company states that it buys various cryptocurrencies in order to ensure that their investors always profit.
The site of the company is very simple and it does not feature much information about the company. The information is generally vague, which can always be a sign that the company is not really serious about its services. The company claims to have clients in 73 different countries and has testimonials from happy clients, but there is no way to prove that these are not fake.
Philippine SEC Issued Warning About OneCash Trading
After receiving reports about an unregistered company which was acting as an online trading and offering returns of 200%, the SEC decided to investigate if the company was a scam or not. It discovered that this trading firm used Facebook to generate interest by using sponsored links.
After the user registers, he can buy tokens from the company and become an investor or become a “builder” and call more people to the company. These builders get their money from calling people and receive profits up to the 10th level in a scheme very alike classic multi-level marketing (or Ponzi Schemes).
The SEC asked the investors to be cautious of companies like this one because not only they are probably scams that will take the users money and vanish, they are also unregulated and against the Philippine law.
What About The PBB150 Trading Scheme?
In the same announcement in which OneCash Trading was called a scam by the Philippine SEC, the organization also warned the citizens of the country against a multi-level marketing company called PBB150 Trading. This company uses a classic Ponzi Scheme in which the users have to recruit other people to the system to be able to receive points and get money.
The scheme scams people into buying “Kringles”, the digital currency created by the company. It states that the Kringles will be worth about 30% more in 15 days, which is not true. The SEC also stated during the announcement that the company was not regulated or registered in the Commission, being an illegal company which violated the law of the country.
The Future Of Onecash Trading Crypto Exchange
At the moment, OneCash Trading is still online and operating. The government states that it will do everything in its power to make this and other sites go offline, but that is not happening at this moment.
People caught by the Philippine government trying to lure other people to invest in either OneCash Trading or PBB150 can be charged under the Section 20 of the Securities Regulation Code of the country, which prohibits Ponzi Schemes. The criminal might face charges which can be a fine of about $100,000 USD or up until 21 years of imprisonment.
More and more governments are cracking down illegal activities involving cryptocurrencies and scams in the cryptocurrency market. Because of this, the Philippines SEC is currently working on a new set of legislation to protect its citizens.