The Philippine Securities and Exchange Commission (PSEC) has posted a notice on its website warning the public not to invest in Gemini's Gemini Derivatives product. The product is available on the Gemini Foundation platform launching in select jurisdictions on May 1.
Derivatives are securities under Philippine law and therefore require registration with PSEC. Gemini lacks the required licenses and authorizations to operate in the country. Salesmen, brokers, dealers or agents who sell or promote unregistered securities face fines of up to 5 million pesos ($89,826), the agency said in a statement dated May 11 but released a week later. fine or 21 years in prison.
The PSEC warning refers to the SEC and CFTC complaints against Gemini and quotes SEC Chairman Gary Gensler on Gemini’s Earn program, which the SEC filed in January: “Today’s charges build on previous actions to show the market and the investing public that crypto lending platforms and other intermediaries need to comply with our tried and tested securities laws. It’s not optional. It’s the law .”
According to a May 1 announcement, the Gemini Foundation platform was launched in 29 countries, including the Philippines. It is not available in the US, UK or EU. it offers bitcoin, A perpetual contract denominated in the exchange's native Gemini Dollar (GUSD). Gemini is locked in a legal battle with Digital Currency Group’s crypto lender Genesis Global Capital, which declared bankruptcy in January, with $700 million worth of Gemini’s client funds locked up.
Gemini did not immediately respond to Cointelegraph's inquiries about the Philippine warning.
