The Securities and Exchange Commission (SEC) of the Philippines is preparing to introduce a regulatory framework for crypto assets and trading by the second half of 2024. The SEC Chair, Emilio Aquino, recently announced this plan, emphasizing the importance of investor protection and regulation of trading activities within the country. This move comes as part of the SEC’s efforts to crack down on unregistered platforms, with a focus on tightening regulations and ensuring the security of investors’ funds. In line with this, the SEC has been actively pursuing the removal of Binance-linked applications from Apple and Google app stores in the Philippines to prevent unauthorized operations in the country.
Aquino highlighted the illegality of selling unregistered securities and operating as an unlicensed broker in the Philippines under the Securities Regulation Code. The SEC’s actions against Binance are aimed at curbing such activities and enforcing compliance with regulatory requirements. Aquino also mentioned that tech companies like Apple and Google have been cooperative in responding to requests to block such apps, indicating a swift response to regulatory concerns. The crackdown on illegal crypto activity in the Philippines is part of the SEC’s broader strategy to protect investors and ensure the integrity of the financial market.
The SEC Chair stressed the importance of proper licensing and registration for trading platforms, citing Republic Act No. 8799 as the legal basis for these requirements. Aquino acknowledged the challenge posed by users accessing unregistered platforms through virtual private networks (VPNs) but reiterated the SEC’s commitment to enforcing regulations and preventing unauthorized trading activities. While acknowledging the limitations in preventing VPN usage, Aquino emphasized the SEC’s proactive approach to addressing such challenges and ensuring compliance with regulatory standards.
Aquino also mentioned the regulatory lessons learned from the collapse of the Bahamas-based crypto exchange FTX in November 2022, where many American investors suffered losses. This incident serves as a cautionary tale for regulators and underscores the importance of robust oversight to protect investors and maintain market integrity. The SEC’s efforts to introduce a regulatory framework for crypto assets and trading in the Philippines aim to strengthen investor protection, enhance market transparency, and prevent potential risks associated with unregulated trading platforms. By aligning with global best practices and regulatory standards, the SEC seeks to foster a safe and secure environment for crypto investors in the Philippines.
