Philippines SEC releases new crypto regulatory framework draft

As a seasoned crypto investor with years of experience navigating the volatile and ever-evolving world of digital currencies, I find the recent move by the Securities and Exchange Commission (SEC) Philippines to draft regulations for cryptocurrency service providers a much-needed step towards fostering a secure and transparent market.

The Philippine Securities and Exchange Commission has released a proposed outline for regulating digital currencies, encouraging all interested parties to submit their comments or feedback on this draft by January 18, 2025.

As per the latest information from the document that was recently circulated, the regulatory draft is called “SEC Guidelines for Cryptocurrency Service Providers (CASP Guidelines)”. This set of rules encompasses various aspects of cryptocurrency trading such as qualifying for an SEC-issued license, market operations, and public offerings.

As a forward-thinking crypto investor, I strongly advocate for the development of a comprehensive regulatory framework by the SEC in the Philippines. This is crucial given the swift expansion and increasing popularity of the cryptocurrency sector within our nation.

For the thriving expansion and advancement of emerging cryptocurrency marketplaces, offerings, and entrepreneurial ventures, it’s essential to establish well-defined, balanced, and strong regulatory guidelines. These rules will foster an environment where markets operate fairly, effectively, and transparently.

Consequently, the Securities and Exchange Commission (SEC) has put forth a proposal that requires crypto service providers to register with them and acquire a CASP license if they intend to operate within the Philippines. Interested parties are encouraged to provide feedback on the proposed regulatory framework before January 18, 2025.

In order to obtain a CASP license, companies must adhere to the guidelines within the specified framework, employ a minimum of four employees living in the country, register as a stock corporation with the Securities and Exchange Commission (SEC), and satisfy the minimum capital standards established by the SEC.

As a researcher, when I suspect a registered cryptocurrency firm may have breached our outlined regulations, I initiate an in-depth probe into their business transactions and daily activities to uncover any potential misconduct. Penalties for non-compliance can range from monetary fines, halting operations with a cease and desist order, or even revoking the CASP license that authorizes their operations.

To minimize risks related to money laundering and cybersecurity issues, it’s essential for CASP license holders to adjust their systems according to the National Cybersecurity Strategy. Regular checks and evaluations are necessary to maintain robust security measures that safeguard against evolving dangers in the digital landscape.

Instead of that, firms intending to launch public sales or distributions of cryptocurrency assets need to initially provide an informational document to the Securities and Exchange Commission (SEC). This document should then be made publicly available on the company’s website and all its social media channels at least 30 days prior to the actual offering.

In simpler terms, the disclosure document needs to provide details about the entity offering the cryptocurrency, the one issuing it, the technology behind it, any associated rights and duties related to the token, potential dangers, and cautions regarding potential devaluation.

Furthermore, there’s a specific part within the document that lays down restrictions on activities like market manipulation, insider trading, and illegal information disclosures.

By mid-2024, Chairman Emilio B. Aquino of the Philippine Securities and Exchange Commission (SEC) plans to roll out a series of regulations for cryptocurrency trading. This decision was made public around half a year after the SEC prohibited Binance from functioning within the country without a valid license.

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2024-12-24 11:24