• The Philippines Securities and Exchange Commission (SEC) is seeking to bring cryptocurrencies under its scope and beef up its authority over the local cryptocurrency industry under new draft rules.
• The SEC said the draft rules will give it “rule-making, surveillance, inspection, market monitoring, and more enforcement powers”
• The guidelines expand the definition of a security to include “tokenized securities products” or other financial products using blockchain or distributed ledger technology (DLT).
The Philippines Securities and Exchange Commission (SEC) is making moves to bring cryptocurrencies and other digital financial products under its scope of authority. The SEC announced on Jan. 25 that it has put forward draft rules for public comment which, if adopted, will bring cryptocurrencies, digital financial products and services, and their providers under the SEC’s remit.
The draft rules are designed to operationalize a new law and give the SEC greater powers of rule-making, surveillance, inspection, market monitoring, and enforcement. They also expand the definition of a security to include tokenized securities products and other financial products which use blockchain or distributed ledger technology (DLT).
The SEC believes that the implementation of these rules will help protect investors from risks such as fraud, cyber-attacks, market manipulation, and other malicious activities. It also believes that the new rules will help create a more secure and transparent environment for digital asset trading.
The SEC also said that the rules would help promote innovation in the financial industry, as well as create opportunities for fintech startups to develop new products and services. Furthermore, it said that the rules would help create a level playing field for startups and traditional financial institutions.
The SEC has opened up the draft rules for public comment until Feb. 24. After the comment period is over, the SEC will review the comments and make any necessary changes before the rules are officially adopted.
The adoption of these rules will be a significant step forward for the cryptocurrency industry in the Philippines. It will provide greater clarity and certainty for investors, as well as provide protection from risks and malicious activities. Furthermore, it will open up the door for greater innovation and development in the cryptocurrency space.