IQ Option LCC

June 15, 2021 ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT SEC ADVISORY Based on information gathered by the Commission, the entity operating under the name IQ OPTION LCC or simply IQ OPTION from St. Vincent and the Grenadines in the Caribbean is soliciting investments in the Philippines WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY from the Commission. As part of its scheme, IQ OPTION claims that it is legally represented in the Philippines and allows Filipino users to earn money following local laws, thus, offering enticing leverages ranging from 1:20 to 1:1000 which appears to be "too good to be true." To wit : IQ OPTION even allows the use of trading robots particularly its IQ BOT in its platform to make trading therein supposedly automated and more effective. Aside from the above red flags, IQ OPTION is apparently being promoted by members of LEARN AND EARN ONLINE as well which was the subject of our SEC ADVISORY dated 15 April 2021 for promoting dubious online trading platforms and openly soliciting investments herein the Philippines without the necessary registration and/or authorization from the Commission. As apparently endorsed : Based on our records, IQ OPTION is NOT REGISTERED with the Commission and is NOT AUTHORIZED to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC) in the Philippines . None of their purported agents, representative, and/or members have appropriate registration and/or license to offer or sell securities to the public as well. Our records likewise show that IQ OPTION is operating its digital exchange platform in the Philippines without the proper registration with the Commission relative to Section 32 of the SRC on the "Prohibition on Use of Unregistered Exchange." Likewise, IQ OPTION is not a registered Virtual Asset Service Provider (VASP) with the Bangko Sentral ng Plilipinas under Circular No. 1108, series of 2021 or the Guidelines for Virtual Asset Service Providers. Based on the foregoing, it must be noted that operating or doing business in the Philippines requires prior registration and/or authorization with the concerned authorities and/or agencies including the Commission . Even the BSP requires those engaged in online trading, digital assets and/or similar activities operating in the country to register in accordance with its guidelines. Therefore, despite having purported legal representations in the Philippines as claimed by IQ OPTION , it is still not sufficient to satisfy the registration requirements set forth under our laws for foreign entities actually doing business in the country. Hence, the public is advised NOT TO INVEST or STOP INVESTING in any scheme being offered by IQ OPTION and to exercise due diligence before placing their hard earned monies in entities that promises ridiculous and/or fixed rate of return with little or no risk. The public must be aware that trading with such high leverage is in fact dangerous. Although the chances of earning huge profits is relatively high, yet, such kind of leverage can also work against the investor/trader because it can also amplify the possible losses that one may endure therein. Accordingly, the Commission warns all unscrupulous individuals and/or entities that strict penalties are imposed for violations of the Securities Regulation Code, the Revised Corporation Code, and such other rules and regulations enforced by the Commission . It must be emphasized that the offering and sale of such securities in the form of investment contracts using the "Ponzi Scheme" is fraudulent and unsustainable and is NOT a registrable security . The Commission will NOT ISSUE a License to Sell Securities to the Public to persons or entities that are engaged in this business or scheme . Those who act as salesmen, brokers, dealers or agents of unauthorized entities in selling or convincing people to invest in their investment scheme offered including solicitations and recruitment through the internet , may likewise be criminally prosecuted and penalized with a maximum fine of Five Million pesos (P5,000,000.00) or a penalty of Twenty-one (21) years of imprisonment or both pursuant to Sections 28 and 73 of the SRC. Similarly, those who invite or recruit others to join or invest in such venture or offer investment contracts or securities to the public may incur criminal liability, or otherwise be sanctioned or penalized accordingly as held by the Supreme Court in the case of SEC vs. Oudine Santos (G.R. No. 195542, 19 March 2014). The names of all those involved will also be reported to the Bureau of Internal Revenue (BIR) so that the appropriate penalties and/or taxes be assessed correspondingly. As always, it must be noted that the above laws are not aimed to hinder or pose significant threats or risks to businesses especially those engaged in online trading, forex, and/or cryptocurrency projects but are intended for the protection of both the registered entities and the investing public from any anomalies and/or irregularities which tend to result from any unlawful and/or unauthorized operations. Should you have any information regarding any investment solicitation activity by any individual or group of individuals representing IQ OPTION , please send your report to the EIPD at [emailprotected]. For the guidance of the public. Pasay City, June 15, 2021.