SEC issues advisory on Outrace “Play to Earn”

The Securities and Exchance Commission or SEC has just announced that Outrace “Play To Earn” is doing business in the country without the necessary license and authority from the Commission.

Outrace is a racing game that allows its players to earn Outrace $ORE tokens by playing or purchasing the token through its Initial Coin Offering at a significantly low price on the pretext that both will considerably increase in value once $ORE is listed on public exchanges.

Based on the records of the SEC, Outrace 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 SRC in the Philippines.

The SEC also notes that Outrace does not have any brokers, account managers, agents, and/or representatives that have appropriate registration and license to offer and sell such securities to the public.

Outrace is also neither registered as a Virtual Asset Service Provider with the BSP, nor does it have a corresponding certificate of authority.

The SEC has advised the public not to invest or stop investing in $ORE and Outrace and in all other endeavors or schemes with its parent company BCPAY INC.

SEC warns that those who invite or recruit other people to join or invest in this venture or offer investment contracts or securities to the public may be held criminally liable under Section 28 of the SRC penalized with a maximum fine of PHP 5,000,000USD 85,200INR 7,223,000EUR 81,150CNY 620,500 or imprisonment of 21 years or both under Section 73 of the SRC (SEC vs. Oudine Santos, G.R. No. 195542, 19 March 2014).

In dealing with these unregistered entities, the Commission reiterates its Advisory entitled: “Dealing with Non-Registered Foreign Entities Organizations and Corporations”. In view thereof, the public is further advised not to invest or to stop investing in any investment scheme being offered by the aforesaid entities/individuals.

Should you have any information regarding the operation of the subject, you may call the Enforcement and Investor Protection Department at 8818-6047 or have the report sent at [email protected]