The Philippines is taking a significant step towards establishing a regulatory framework for the cryptocurrency industry, with the nation’s Securities and Exchange Commission (SEC) revealing plans to introduce comprehensive guidelines in the second half of 2024. According to SEC chair Emilio B. Aquino, the forthcoming regulations will aim to govern cryptocurrency trading in the country while upholding investor security.
Aquino’s announcement comes amid the commission’s ongoing crackdown on unlicensed cryptocurrency service providers operating in the Philippines. The SEC has recently imposed a ban on Binance for offering unregistered securities and has requested Apple and Google to remove the exchange’s applications from their respective app stores. Aquino acknowledged that some traders might attempt to bypass these restrictions using virtual private networks (VPNs) but emphasized that the commission’s actions are necessary to ensure compliance with existing regulations.
The SEC chair reiterated that all cryptocurrency trading platforms in the Philippines are required to obtain the necessary licenses to offer their services, as mandated by the nation’s Securities Regulation Code (SRC). He cited the collapse of FTX and the subsequent losses suffered by investors as a lesson for the Philippines, underscoring the importance of a clear and enforceable regulatory environment in the digital asset space.
With the introduction of comprehensive crypto regulations in 2024, the Philippines aims to strike a balance between fostering innovation and protecting the interests of investors. As Aquino emphasized, the nation cannot “run after people outside” its jurisdiction, highlighting the need for a robust regulatory framework within its borders.
