• The Securities and Exchange Commission (SEC) of the Philippines has proposed new regulations to expand its purview to include virtual currencies and other financial instruments based on blockchain or distributed ledger technology (DLT).
• The SEC would have the authority to prevent service providers from levying excessive interest, fees, or other charges, and to disqualify and suspend directors, executives, or employees who are found to be in breach of the law.
• The proposed regulations are open to public comment before they are finalized and put into effect.
The Philippines Securities and Exchange Commission (SEC) has proposed a new set of regulations in order to expand its purview to include virtual currencies and to increase its control over the country’s crypto space. The proposed regulations, which are open for public comment before they are finalized and put into effect, would grant the SEC extensive power for better control over the sector.
Under the new regulations, the SEC’s purview would expand to include other types of financial goods and services, such as digital financial products and services, and the companies that deliver them. This would give the agency the authority to prevent providers from levying excessive charges, as well as the power to disqualify and suspend directors, executives, or employees who are found to be in breach of the law. SEC Chairman Jay Clayton also stated that the agency’s “rule-making, surveillance, inspection, market monitoring, and more enforcement powers” would be enhanced.
Furthermore, the regulations would broaden what constitutes security to include “tokenized securities products” and other financial instruments based on blockchain or distributed ledger technology (DLT). This would allow the SEC to better monitor and regulate the sector, providing greater protection to investors and the public.
The proposed regulations have been met with both praise and criticism from various stakeholders in the crypto industry. Those in favor of the regulations believe that it would help to create a more secure and transparent environment for the industry, while those against it argue that it would limit innovation and hamper growth.
Nonetheless, the SEC has made it clear that it is committed to ensuring the safety and integrity of the sector. It will continue to closely monitor the sector and take action when necessary. It remains to be seen whether the proposed regulations will be finalized and put into effect, but it is clear that the SEC is committed to maintaining control over the crypto sector in the Philippines.