Philippines SEC To Release Crypto Regulatory Framework By Year’s End

The Philippine Securities and Exchange Commission (SEC) impacts the crypto industry in two ways. strategy: Enforcing unregistered platforms and building regulatory structures for the future. Investors and fans can expect clearer guidance to be released by the end of 2024, as SEC Chairman Emilio B. Aquino confirmed plans to release crypto asset and trading guidelines.

This action comes in the wake of the increasing adoption of cryptocurrencies in the Philippines. The SEC’s primary goal is to protect investors in this dynamic and often volatile market. The regulatory framework will define specific rules for virtual asset trading platforms operating in the country.

“We have to figure out [a framework]; we intend to issue it by the second half of this year,” President Aquino said at a recent press conference. This timeline offers a glimpse of stability for investors seeking a safe means of participating in the cryptocurrency market.

The announcement of this crypto platform coincides with the SEC’s recent actions against unregistered trading venues. Specifically, on April 19, 2024, the Commission demanded the removal of the Binance app from Apple and Google’s app stores in the Philippines. Binance, the world’s leading digital asset exchange by daily trading volume, currently operates without the necessary licenses required by the Philippine Securities Regulation Code (SRC).

Aquino acknowledged that virtual private networks (VPNs) continue to be used to access these platforms, but stressed the importance of proper registration.

“They are [trading platforms] We need to secure the necessary licenses… We are not choosing one of these platforms. “That’s our direction,” he reiterated.

The SEC’s approach to secure encryption

The SEC is taking a proactive stance, recognizing the pitfalls exposed by the collapse of Bahamas-based cryptocurrency exchange FTX in November 2022. “A lot of investors were affected there,” Aquino noted. However, he highlighted a positive outcome: the existence of a “long-haul law” in the United States that allows authorities to take legal action against fraudulent products made around the world. The Philippines’ current legal framework can only regulate activities within its borders.

The upcoming guidelines represent a major step towards a safer and more transparent crypto market in the Philippines. This, in combination with SEC enforcement actions, is intended to instill confidence in investors and pave the way for responsible innovation within the industry. With clear regulations in place, the Philippines is well positioned to navigate the ever-evolving world of cryptocurrencies.

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