The Securities and Exchange Commission (SEC) in the Philippines is expected to introduce a regulatory framework for crypto assets and trading in the latter half of 2024. This move is aimed at regulating cryptocurrency trading within the Philippines and prioritizing investor protection. The SEC has been actively working to tighten its control over unregistered platforms, with recent efforts including the removal of Binance-linked applications from Apple and Google app stores in the Philippines. SEC Chair Emilio Aquino stated that unauthorized operations in the country, such as selling unregistered securities or acting as an unlicensed broker, are illegal under the Securities Regulation Code.
Aquino emphasized the importance of proper licensing and registration for trading platforms, as mandated by Republic Act No. 8799. The crackdown on unauthorized platforms like Binance is part of the SEC’s efforts to ensure compliance with regulatory requirements and prevent potential threats to investors’ funds. Despite the SEC’s actions, Aquino acknowledged the challenge posed by users accessing unregistered platforms through virtual private networks (VPNs). While the SEC cannot completely prevent this, Aquino stated that they are taking steps to address the issue and ensure that they are not blamed for any resulting incidents.
The SEC’s upcoming cryptocurrency guidelines are expected to provide a comprehensive framework for regulating crypto assets and trading activities within the Philippines. This initiative aligns with the SEC’s broader objectives of protecting investors and ensuring the integrity of the securities market. By introducing clear regulatory guidelines, the SEC aims to enhance transparency and accountability in the crypto industry while safeguarding investors against potential risks and threats. The SEC’s actions against unauthorized platforms like Binance reflect its commitment to enforcing regulatory compliance and maintaining the integrity of the financial markets in the country.
Aquino cited the collapse of Bahamas-based crypto exchange FTX in November 2022 as a cautionary example, where many Americans were adversely affected. By learning from past incidents and strengthening regulatory oversight, the Philippines SEC aims to prevent similar incidents and protect investors from potential losses. Aquino also highlighted the need for swift action from tech giants like Apple and Google in response to requests to block unauthorized apps and platforms. This collaboration between regulatory authorities and tech companies is essential in ensuring the effectiveness of regulatory enforcement measures and preventing unauthorized activities in the cryptocurrency space.
Overall, the SEC’s efforts to introduce a regulatory framework for crypto assets and trading in the Philippines demonstrate the government’s commitment to fostering a secure and transparent environment for cryptocurrency activities. By establishing clear guidelines and enforcing regulatory compliance, the SEC aims to protect investors and maintain the integrity of the financial markets in the country. While challenges like VPN usage pose obstacles to regulatory enforcement, the SEC remains proactive in addressing these issues and safeguarding the interests of investors. Through collaboration with tech companies and other stakeholders, the SEC seeks to strengthen its regulatory oversight and prevent unauthorized activities that may pose risks to investors and the financial system.
