• The Philippines Securities and Exchange Commission (SEC) has proposed drafting regulations concerning virtual currencies and digital financial products.
• The regulations would expand the authority of the SEC to include tokenized securities products, other financial instruments based on blockchain or distributed ledger technology, and digital financial products and services.
• The SEC would also have the authority to prevent service providers from levying excessive charges, and to disqualify and suspend directors, executives, or employees found to be in breach of the law.
The Philippines Securities and Exchange Commission (SEC) has recently proposed the drafting of regulations concerning virtual currencies and digital financial products in order to increase its control over the country’s crypto space. The proposed regulations, if passed, would expand the authority of the SEC to include tokenized securities products, other financial instruments based on blockchain or distributed ledger technology, and digital financial products and services.
SEC Chairman Jay Clayton stated that the agency’s “rule-making, surveillance, inspection, market monitoring, and more enforcement powers” would be enhanced by the legislation. The regulator would also be given the authority to prevent service providers from levying excessive interest, fees, or other charges. Further, if a director, executive, or employee is found to be in breach of the law, the SEC would be given the power to disqualify and suspend them from their positions.
The proposed regulations would also include new rules concerning the registration of digital asset exchanges, as well as the registration and licensing of digital asset traders, custodians, and brokers. Additionally, the new regulations will also require exchanges to report suspicious activities to the SEC. These rules are aimed at providing better protection to consumers, as well as preventing money laundering, terrorist financing, and other criminal activities.
The proposed regulations would also give the SEC the authority to set its own regulations for financial products and services, including cryptocurrency. This means that the regulator would be able to impose its own rules when it comes to the registration of digital asset exchanges, as well as the registration and licensing of digital asset traders, custodians, and brokers.
The proposed regulations would also require service providers to comply with the Anti-Money Laundering Act, the Financial Transaction Reports and Analysis Center Act, and other relevant laws and regulations. In addition, the SEC would also have the authority to issue fines and sanctions for any violations of the proposed regulations.
Overall, the proposed regulations will give the SEC more control over the crypto sector in the Philippines, and will help ensure that the sector is safe and secure. It will also help protect consumers, as well as prevent money laundering, terrorist financing, and other criminal activities.