Upcoming Regulations for Crypto in the Philippines
Exciting times are ahead for the cryptocurrency scene in the Philippines, as regulators express plans to reveal draft regulations by mid-September. According to a report from The Manila Times, Ephyro Luis Amatong, the chairman of the Philippines’ Securities and Exchange Commission (SEC), confirmed that cryptocurrency exchanges could soon find themselves classified as traditional trading platforms.
Why the Shift to Regulation?
Amatong emphasized the necessity of regulatory measures for these exchanges:
“We see the need to regulate them as trading platforms.”
This move reflects a growing recognition of the need for oversight following several global incidents that have raised concerns about security and investor protection in the crypto space.
Initial Coin Offerings (ICOs) Under Scrutiny
But it’s not just exchanges that are being targeted. Filipino lawmakers are also stepping up to formalize regulations around Initial Coin Offerings (ICOs) and their issuers. Just last month, the SEC opened a draft of the new rules for public feedback, with a proposal deadline that has just passed on August 31. The finalized rules are expected any day now, making this a hot topic for local investors.
Cooperative Oversight: A Team Effort
The SEC is not going solo in this endeavor. They are working closely with the Bangko Sentral ng Pilipinas (BSP), or the central bank, in what Amatong describes as a “cooperative oversight.” He stated,
“The discussion… [involves] joint cooperative oversight over (cryptocurrency exchanges) engaged in trading.”
Looking to Japan as a Model
This team approach echoes strategies seen in Japan, where regulators have tightened rules following major security breaches. In the Philippines, the government has also set up a fintech hub in the Cagayan Economic Zone, designed to allow blockchain and cryptocurrency firms to operate legally in a controlled environment.
The Road Ahead
As the regulations roll out, the market is eager to see how it will shape the landscape for investors and businesses alike. A balanced approach to regulation could pave the way for a more secure and stable cryptocurrency market in the Philippines.
