Philippines Police raids the recent cryptocurrency scam

Philippines Police raids the recent cryptocurrency scam

Recently, the Police force of the Philippines did raid the offices for recent cryptocurrency scam. According to sources, the new scam was targeting the investors across China. The report came into being on the 15th of September 2019 by Inquirer.net, a local media outlet. The reports follow the activities of the Immigration Bureau, the Anti-Corruption Commission.

Moreover, the Integrity Monitor & the Enforcement Group alongside a couple of other officials raid the Grapefruit Services Inc. offices. By the looks of it, the raid took place in the heart of the Pasig City on the 11th of September. The scam and fraudulent activities are continuing concerning cryptocurrency across the world.

According to sources, the authorities first got the tip from the Embassy of China. Later, upon investigation, the authorities came to know that the cryptocurrency firm did already defraud several cryptocurrency investors. Grapefruit Services did conduct fraudulent activity across mainland China.

Jaime Morente, the Immigration Commissioner behind the case, said that the government of China did cancel all the employees’ passports. Now, the employees have become illegal workers across the Philippines. So far, the officials did also arrest around 277 employees who were working in the firm. On the other hand, recent reports suggest that most of the employees are the citizens of China.

A special zone of economy

An anonymous told the Inquirer.net that Grapefruit is completely an authorized provider of another firm. The other firm is the Golden Millennial Quickpay Inc Ltd that operates under a specific license from the CEZA.

On the other hand, CEZA is coming under the government, and it oversees the Freeport and Cagayan Special Economic Zone. The zone is a special area of the economy in the northern side of the country. The zone fundamental values are to attract the local as well as foreign investment. The government of Philippine has already begun to allow the cryptocurrency firms to operate in that location back in 2018, April.

According to Inquirer.net, the firm was operating right outside the known zone. Furthermore, this did allow the firm to conduct illicit activities with ease.

The need for special regulation for Cryptocurrency

The PSEC, at the beginning of the year, said that it is going to postpone the issues concerning the regulations. In addition to this regulation came forward due to the ICO procedures which came into being via a draft version in 2018 August.

The PSEC did also state in the draft version that the tokens are emitting all through an ICO. Hence, it will go through a classification name, securities; this is the reason why there is a need for necessary disclosures and commissions. Also, the disclosures should come into being to protect the investment of the local citizens of the country.

Back in February 2019, CEZA did introduce a definitive rule which revolves around the token offerings of the digital asset. The rules would allow to protect investors and regulate the entirety of the cryptocurrency industry. The regulation is becoming a necessary procedure for the nations to control fraudulent activities along with scams.