• The Philippines Securities and Exchange Commission (SEC) has proposed a new set of regulations to expand their purview to include virtual currencies and to increase their control over the country’s crypto space.
• The proposed regulations include financial goods and services, such as cryptocurrency and digital financial products, for public comment, as well as expanding what constitutes a security to include tokenized securities products and other financial instruments based on blockchain or distributed ledger technology (DLT).
• The SEC also has the authority to prevent service providers from levying excessive interest, fees, or other charges, and to disqualify and suspend directors, executives, or employees who breach the law.
The Philippines Securities and Exchange Commission (SEC) recently proposed a set of regulations to expand their purview over the country’s crypto space. The proposed regulations are meant to provide greater control and oversight of virtual currencies and digital financial products, as well as provide better protection and regulation for the financial markets.
The regulations, which are currently open for public comment, broaden the definition of “security” to include tokenized securities products and other financial instruments based on blockchain or distributed ledger technology (DLT). The SEC also has the authority to prevent service providers from levying excessive interest, fees, or other charges, and to disqualify and suspend directors, executives, or employees who breach the law.
The proposed regulations also include the SEC’s authority to establish its own regulations pertaining to financial goods and services. This includes the ability to monitor markets and increase enforcement powers. Additionally, the SEC will be able to set up its own rules for digital financial products and services, as well as the companies that deliver them.
The move is part of the SEC’s efforts to provide better protection and regulation for the financial markets in the Philippines. SEC Chairman Jay Clayton stated that the agency’s “rule-making, surveillance, inspection, market monitoring, and more enforcement powers” would be enhanced by the legislation. The SEC is confident that these new regulations will help protect consumers and ensure that investments in these products are done responsibly.
The SEC has also been working on other initiatives to increase its control over the crypto sector in the Philippines. In November of 2020, they issued a draft circular that seeks to regulate cryptocurrency exchanges and ICOs. The circular also requires that exchanges register with the SEC and comply with certain operational standards.
The Philippines is one of the leading countries in Asia when it comes to regulating the cryptocurrency industry. The country is taking a proactive approach to the regulation of this emerging sector, which is a welcome move for both the industry and investors. The proposed regulations from the SEC are a step in the right direction and could help to increase investor confidence in the crypto sector.