The Philippines continues to stand out as one of the leading adopters of cryptocurrency globally, according to a new report from blockchain intelligence firm Chainalysis. The country currently ranks sixth worldwide in terms of cryptocurrency adoption, showcasing strong performance in both centralized and decentralized finance service value.
This strong performance comes despite the Philippines slipping from second place last year, as more countries ramp up their crypto activity. However, industry pioneers in the Philippines remain optimistic, noting an increased embrace of blockchain technology that goes beyond just cryptocurrencies.
Like many other nations, the Philippines is working to establish a formal regulatory framework for digital assets and cryptocurrencies. However, the enactment of the framework by the Philippine Securities and Exchange Commission (SEC) has been postponed following the high-profile collapse of the crypto exchange FTX late last year.
SEC Commissioner Kelvin Lester Lee discussed the agency’s stance in an exclusive interview with Forkast during Philippine Blockchain Week. He noted that while the SEC has no plans to mirror the “crypto crackdown” by the U.S. SEC, its own framework likely won’t be finalized until at least the first half of 2024.
“We want to make sure that the public has buy-in in relation to this. We want to make sure that the public is ready for this as well, because admittedly, the way we were setting it up, we want to protect the general public. We want to make sure that it’s not too prohibitive that businesses such as crypto platforms cannot operate,” said Lee. He added that the SEC is collaborating closely with regulators in Southeast Asia to develop aligned crypto policies.
Lee also addressed the proliferation of crypto scams in the Philippines, which has led to increased scrutiny of the industry. He stated that enforcement actions by the SEC are underway to safeguard consumers.
When asked about the US crypto crackdown, he answered, “We are, however, supportive of the U.S. SEC’s position being a counterpart agency, but we defer to how they do things in their jurisdiction. In the same way, they will defer to us on what we do in our jurisdiction. Now, whether or not we will ever go into a crackdown, will depend on what happens with our local players. If there are abuses, then we’ll be forced to do that.”
The deferred regulatory timeline is unlikely to stunt crypto innovation in the Philippines, where virtual assets are already widely used for remittances, gaming, and everyday transactions. However, an eventual comprehensive framework will provide legitimacy and spur greater mainstream adoption while curbing illicit activities.
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