Regulation
Philippines SEC to release crypto regulatory framework by end of year
The Philippine Securities and Exchange Commission (SEC) is impacting the crypto sector with a dual aim strategy: enforce unregistered platforms and create a regulatory structure for the future. Investors and fans can expect clearer guidance by the end of 2024, as SEC Chairman Emilio B. Aquino confirmed plans to issue guidelines on cryptocurrency assets and exchanges.
This action follows an increase in cryptocurrency adoption in the Philippines. The SEC’s primary goal is to protect investors in this dynamic and often volatile market. The regulatory framework will set specific rules for virtual asset trading platforms operating in the country.
“We have to find [a framework]; we will release it by the second half of this year,” Aquino said at a recent press conference. This timeline offers a glimpse of stability to investors looking for secure ways to participate in the crypto market.
The crypto platform’s announcement coincides with recent actions taken by the SEC against unregistered trading platforms. Notably, on April 19, 2024, the commission demanded the removal of the Binance app from the Apple and Google app stores in the Philippines. Binance, the world’s leading digital asset exchange by daily trading volume, is currently operating without the necessary licenses required by the Philippine Securities Regulatory Code (SRC).
While acknowledging the continued use of virtual private networks (VPNs) to access these platforms, Aquino stressed the importance of proper registration.
“They [trading platforms] need to obtain the required licenses… We do not choose any of these platforms. This is our direction,” he reiterated.
The SEC’s Approach to Securing Crypto
The SEC is taking a proactive stance, recognizing the pitfalls revealed by the collapse of FTX, the Bahamas-based cryptocurrency exchange, in November 2022. “A lot of investors were affected there,” Aquino noted. However, he highlighted the positive outcome: the existence of a “long arm law” in the United States which empowers authorities to take legal action against fraudulent offers made on a global scale. The Philippines, with its current legal framework, can only regulate activities within its borders.
The upcoming guidelines mark an important step towards a more secure and transparent crypto market in the Philippines. This, combined with the SEC’s enforcement actions, aims to inspire investor confidence and pave the way for responsible innovation within the industry. With clear regulations in place, the Philippines is positioning itself to navigate the ever-changing world of cryptocurrency.
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