The Securities and Exchange Commission (SEC) has issued a cease and desist order against the cryptocurrency platform Riscoin and its affiliates, including Riscoin Exchange and Riscoin Trading, effective May 14, 2026. This action comes amid growing concerns over unregistered securities sales and unauthorized investment schemes.
Regulatory Measures Aimed at Protecting Investors
The asset freeze is intended to forestall grave damage to the investing public and preserve assets for investor benefit.
SEC Enforcement and Investor Protection Department
- Immediate halt to solicitation and sale of unregistered securities.
- Prohibition on transactions involving depository bank accounts.
- Termination of internet presence related to investment activities.
The SEC's order mandates that Riscoin and its representatives cease all investment solicitation efforts and dismantle their online presence promoting the investment scheme. The companies involved have five days to file a verified Motion to Lift the Cease and Desist Order.
A certification from the Philippine Fintech Innovation Office revealed that Riscoin lacks the necessary licenses to operate as a Crypto-Asset Service Provider (CASP) in the country. This lack of licensing has raised alarms about the legitimacy of their operations.
The SEC noted that Riscoin's copy trading scheme relies on misleading promises of guaranteed returns, often marketed through social media platforms like Facebook and Telegram. Investors were reportedly lured with a minimum investment of $500, or roughly 30,000 pesos.
This regulatory action follows previous warnings issued by SEC offices in Laoag and Zamboanga, which cautioned the public against engaging with Riscoin. Despite these advisories, the platform reportedly continued its investment solicitation, claiming legitimacy through foreign business registration.
The SEC's ongoing scrutiny of cryptocurrency operations reflects a broader regulatory landscape in the Philippines, where authorities are increasingly vigilant about potential scams and unregulated financial activities.