The Bangko Sentral ng Pilipinas (BSP) has recently issued a warning regarding a company offering “cloud mining machines,” emphasizing that its operations are beyond the BSP’s regulatory scope.
Cloud mining machines (IMAGE CREDIT: https://www.investopedia.com/)
Cloud mining enables individuals to lease processing power from remote data centers for cryptocurrency mining without the need to manage physical hardware. However, the BSP expressed particular concern about SKPOOLS MINING CORPORATION and its associates — the firm is allegedly involved in operating these machines without proper registration, prompting the BSP to issue a specific cautionary advisory.
Public urged to remain vigilant
In an official statement on its website, the BSP clarified: “Their purported business activity, ‘Currency Computing Mining Machines,’ does not fall under the jurisdiction of the BSP.”
The advisory further urged the public to remain vigilant when encountering entities falsely claiming affiliation with the BSP through websites, social media channels, and promotional materials.
To avoid potential deception, the BSP advises Filipinos to verify the legitimacy of financial institutions using this official directory: https://www.bsp.gov.ph/SitePages/financialstability/Directories.aspx.
Additionally, the public is encouraged to report any misrepresentations or suspicious financial activities to the BSP via landline, email, or by visiting the BSP office directly at the address below:
Bangko Sentral ng Pilipinas Address: A. Mabini St. cor. P. Ocampo St., Malate, Manila, Philippines Contact Number: (+632) 8811-1277 or 8811-1BSP E-mail Address: bspmail@bsp.gov.ph
Cease and Desist Order
In a related development, the Securities and Exchange Commission (SEC) has filed a motion for the issuance of an order directing SKPOOLS Mining Corporation, its officers, partners, and representatives to immediately cease offering or selling securities in the form of investment contracts until proper registration statements are filed and approved by the SEC.
The SEC’s Enforcement and Investor Protection Department (EIPD) conducted an investigation prompted by numerous reports and inquiries. It discovered that SKPOOLS Mining has been operating online for three years, claiming to have developed the world’s premier cloud computing platform for mining based on intelligent online applications.
According to the SEC, a prospective investor must also sign up through the link provided and buy the “cloud-mining machine” from P700 to P75,000.00 and earn P70 to P1,960 per day. However, the SEC said that the company is using a fake certificate of incorporation to make it appear it is legitimate.
Despite lacking proper registration, SKPOOLS Mining offers various income streams, including income from mining machine ownership, team income, invitation rewards, and weekly salary rewards. Moreover, the company incentivizes referrals through an invitation reward income method.
Earlier this year, the SEC issued an advisory cautioning the public against investing in SKPOOLS Mining and advising extreme caution when approached by individuals soliciting investments on behalf of the company.