The Securities and Exchange Commission (SEC) has issued cease and desist order against PayAsian Pte. Ltd. to halt its operations without the necessary license.
In a press statement yesterday, the Commission issued an order last March 20 which directs PayAsian to stop engaging in, promoting, selling, and offering sale securities in supposed cryptocurrency investments.
Aside from that, the SEC also prohibited PayAsian from transacting any business involving funds in its banks, and other transactions for the benefit of the investors.
PayAsian’s partners, operators, directors, officers, salesman agents, representatives, promoters, and all entities and subsidiaries that are acting on its behalf are included in the cease and desist order.
Although the corporation was registered in August 2019, its certificate of registration did not include an authority to sell or offer securities to the public, which requires a secondary license from the SEC.
The SEC’s Market and Securities Regulation Department and Corporate Governance and Finance Department attested to the claim the PayAsian has not registered or applied for registration as issuer of securities and for a permit to sell securities.
Its Enforcement and Investor Protection Department gathered evidence which proves that PayAsian has been selling and offering securities in the form of investment contracts without the secondary license to do so.
The SEC issued an advisory as early as November last year and last week amid the financial repercussion caused by the COVID-19 outbreak warning people of entities soliciting investments such as PayAsian.
PayAsian uses a scheme that entices people to buy Paya coins and hold them for six months in order to receive 30% additional Paya Rewards. It also offered referral rewards and “Sharer Packages” where people can invest as much as P5 million to buy more than 700,000 Paya tokens and receive a maximum of P10,000 a day.
According to Section 8 of Republic Act no. 8799 or the Securities Regulation Code, securities such as investment contracts shall not be sold or offered for sale or distribution in the country without the necessary license or approval from the SEC.