Offer services without registration
The Philippine Securities and Exchange Commission (SEC) on the 18th called on citizens not to use derivatives trading services of cryptocurrency exchange Gemini.
At the time of writing this article, the exact reason cannot be confirmed because the link of the file containing the details is incorrect, but according to overseas media, Gemini’s derivative transactions fall under the provision of securities, so They had to register the business with the SEC.
The SEC is regulating the platform “Gemini Foundation” announced by Gemini on the 21st of last month. This is a global version of the cryptocurrency derivatives trading platform, developed to serve non-U.S. investors. Some countries other than the United States, such as Japan, China, and Europe, are not available, but the Philippines is included in the service target countries.
connection: US virtual currency exchange Gemini announces offshore market “Gemini Foundation”
According to Bloomberg, Gemini could face up to 21 years in prison and a fine of around 12.4 million yen (5 million pesos) if prosecuted for violating the regulations.
The Gemini Foundation has been in service since this month, and the Philippine SEC has called on people not to invest in it and to stop investing in it.
connectionSEC sues Gemini and Genesis for securities law violations
About Gemini Foundation
Due to the high degree of uncertainty regarding domestic regulations, U.S.-based virtual currency exchanges have begun to develop offshore markets. The Gemini Foundation is being launched against this background.
According to the Gemini Foundation official website, it now offers perpetual futures trading. He also said that regular futures and options trading services will soon begin.
What is perpetual futures trading?
A type of futures contract, also known as a perpetual swap. The difference from conventional futures trading is that there is no deadline for trading.
At the time of the announcement in April, it was revealed that it would initially offer Bitcoin (BTC) physical trading and perpetual futures trading with a maximum leverage of 100 times, and then Ethereum (ETH) as well.