The Philippine Securities and Exchange Commission (SEC) is to issue complete regulation on the cryptocurrency assets and trading by the fourth quarter of 2024. The project has the objective of improving regulation and ensuring the protection of investors in the fast-growing crypto market in the country.
This was emphasized by SEC Chair Emilio Aquino, who stressed the fact that the agency would create strong boundaries for the cryptocurrency transactions. The action is part of a wider attempt by the Philippine SEC to strengthen its regulation over digital asset exchanges and to eliminate risk from unregistered trading platforms.
Philippines SEC targets Binance in new effort
In the last few months the SEC has become more active and it seems to focus especially on existing platforms that are not registered properly. Specifically, this regulatory body has been leading in the effort of having Binance, a leading global cryptocurrency exchange application, removed from Google and Apple mobile app stores. For the SEC, these apps, which do not need registration, signal their danger to potential Filipino investors.
Emilio Aquino has issued blatant warnings against the sale of unregistered securities and operation of brokerage services without licenses, invoking violations of Republic Act No. 8799, known as The Securities Regulation Code. This is highlighted by the fact that the Binance takedown by the SEC is part of a grander scheme to stop unauthorized crypto-related businesses in the country.
SEC aims for safer Philippine crypto market
Although the SEC is aware of the challenge of limiting people’s ability to access unregulated platforms through VPNs, the SEC acknowledges the difficulty in actually shutting the access to these platforms. On the one hand, Aquino acknowledged the obstacles in the way of the regulator’s effort to tackle the problem, but the regulator’s response – while not being seen as ineffective – was rather considered as a firm response to a complicated issue.
Along with the global incidents, such as a crash of the FTX exchange in 2022 that impacted many investors around the world, the development of the framework also focuses on these cases. These occurrences have molded the SEC to become a promoter of a sound and secure cryptocurrency ecosystem in the Philippines.
The above described guidelines are designed by the Philippine SEC to protect investors and to integrate into the digital infrastructure and standards. This preventive stance is predicted to help generate a safer investment climate and to consequently strengthen the whole integrity of the financial market in the Philippines.
