Philippines to Strengthen Control over Crypto Market
2023.01.30 05:22
Philippines to Strengthen Control over Crypto Market
By Tiffany Smith
Budrigannews.com – Under new draft rules, the Philippines Securities and Exchange Commission (SEC) wants to include cryptocurrencies in its jurisdiction and increase its control over the local cryptocurrency industry.
The securities regulator submitted draft rules for financial products and services, including cryptocurrencies and digital financial products, for public comment, as reported in the Manila Bulletin on January 25.
The SEC stated in a statement that the proposed rules will give it “rule-making, surveillance, inspection, market monitoring, and more enforcement powers” and operationalize a newly signed law.
The guidelines include “tokenized securities products” and other financial products based on blockchain or distributed ledger technology (DLT) in the definition of a security.
The SEC will also be responsible for other financial products, such as digital financial products and services that are accessed and provided through digital channels, as well as their providers.
Similar improvements are made in the capacity to enforce securities regulations. Service providers would be prohibited from collecting excessive interest, fees, or charges by the SEC.
Directors, executives, and any other employees found to be in violation of the law could also be disqualified or suspended by the regulator. It could also stop all business operations.
The Philippines’ central bank and the country’s insurance regulator are also permitted to create rules to supplement related laws, and local laws permit the SEC to create its own rules for applying legislation under its jurisdiction.
The regulator’s severe crackdown on cryptocurrencies continues with this latest development.
The Securities and Exchange Commission (SEC) issued a warning to the general public toward the end of December 2022, stating that a number of local exchanges were “unlawfully allowing” Filipinos access to their platforms.
The Philippine central bank announced in August 2022 that it would be taking a three-year break from accepting new virtual asset service provider (VASP) applications. The procedure was anticipated to reopen on September 1, 2025.
