Summary of Article
- The Philippines Securities and Exchange Commission (SEC) has warned residents against investing in Gemini’s recently launched derivatives products, as the exchange does not have the necessary license or authority to operate the business in the country.
- Gemini Foundation offers investors up to 100x leveraged Gemini Dollar (GUSD) based perpetual contracts for bitcoin (BTC), with altcoins like ether (ETH) to be added later.
- If Gemini fails to comply with the regulators, they risk facing criminal prosecution or paying a hefty fine of five million Filipino pesos (about $89,562).
Philippines‘ SEC Warns Residents Against Investing in Gemini’s Derivatives Products
The Philippines Securities and Exchange Commission (SEC) has warned residents against investing in Gemini’s recently launched derivatives products, as the exchange does not have the necessary license or authority to operate the business in the country.
The Winklevoss Twins’ Gemini exchange launched a new non-US derivatives platform called Gemini Foundation, designed to offer derivatives products to investors in 29 countries, including the Philippines. The derivative product offers investors up to 100x leveraged Gemini Dollar (GUSD) based perpetual contracts for Bitcoin (BTC), with altcoins like Ether (ETH) set to be added later.
Unauthorized Business Operations by Gemini
Sources say that if Gemini fails to comply with local regulations, it risks facing criminal prosecution or paying a hefty fine of five million Filipino pesos ($89,562). The Philippines SEC has described Gemini’s derivatives offering as illegal, as it lacks “the necessary license and/or authority to solicit, accept or take investments/placements from the public nor to issue securities.”
United States‘ SEC Lawsuit Against Gemimi
It will be recalled that earlier this year United States‘ Securities and Exchange Commission filed a lawsuit against Gemimi for allegedly offering unregistered securities to investors in form of its now-defunct Gemimi Earn product. This lawsuit was appealed by Gemimi but is yet pending judgement at higher court levels.