According to reports, the Philippines Securities and Exchange Commission is preparing to regulate cryptocurrencies through its proposed rules. If a “fight” ever develops between them and the national cryptocurrency business in the country, the Securities and Exchange Commission of the country is reported to be ready.
In the recent report, the securities regulator recently developed a draft of rules addressing various financial goods and services that fall under the category of cryptocurrencies and made it available for public opinion. The newly signed bill would purportedly be operationalized by the aforementioned draft regulations, according to the Philippines Securities and Exchange Commission, which would also receive “rule-making, surveillance, inspection, market monitoring, and additional enforcement capabilities.”
By adding “tokenized securities products,” which may also include financial products utilizing blockchain or distributed ledger technology, to the aforementioned draft guidelines, the term “security” has been enlarged (DLT). The SEC is also likely to have jurisdiction over other financial products, including digital financial products and services related to those accessed and delivered through digital channels, as well as their providers.
Additionally, the capacity for enforcing securities laws has been enhanced, and the Philippines Security and Exchange Commission is anticipated to have the authority to prevent service providers from charging excessive interest, fees, or other charges in accordance with the provisions of the aforementioned draft rules.
Additionally, if it is determined that an employee has broken the law, the aforementioned regulator would have the authority to suspend or disqualify directors, executives, or any other employee. A firm’s entire operation could be suspended by the regulator in addition to the individuals involved.
The Stricter Cryptocurrency Environment
This news that an Asian nation is moving toward tighter regulation of cryptocurrencies and the goods and services that come under them is a sign that more and more nations want to control the realm of virtual currency.
In actuality, the Philippines Security and Exchange Commission’s severe crackdown on cryptocurrencies is expanding significantly with the release of these new draft laws. According to reports, it began in the third quarter of 2022. In which the Philippine central bank declared a temporary halt to the acceptance of new applications from virtual asset service providers. The said service, which has apparently been suspended for three years, is expected to resume by the third quarter of 2025.
Additionally, the country’s Security and Exchange Commission issued a warning against utilizing unregistered exchanges that were functioning within the country last month, before the year 2022 came to a close. A handful of exchanges, according to the authority, were “illegally permitting” Filipinos to access their platforms.