In a new set of proposed regulations, the Securities and Exchange Commission (SEC) of the Philippines wants to expand its jurisdiction over the local cryptocurrency business so that it may regulate cryptocurrencies and put them under its purview.
A report that was published on a local news site on January 25 said that the securities regulator has put out for public comment draught regulations pertaining to financial goods and services. These rules encompass cryptocurrencies as well as digital financial products, according to the article.
In a statement, the Securities and Exchange Commission (SEC) claimed that the proposed regulations would make a recently passed bill effective and provide it with “rule-making, surveillance, inspection, market monitoring, and greater enforcement authorities.”
The recommendations broaden the definition of a security such that it now include “tokenized securities products” as well as other financial products that make use of blockchain or distributed ledger technology (DLT).
The SEC will also be responsible for regulating other types of financial goods, including digital financial products and services related to those that may be accessed and supplied via digital channels, as well as the suppliers of such products and services.
In a similar vein, the power to enforce rules governing securities is increased. The SEC has the authority to place limits on the amount of interest, fees, and charges that service providers may collect.
In addition to this, the regulator would have the authority to remove from their positions any directors, executives, or other employees who were found to be in violation of the laws. Additionally, it has the potential to halt all operations of a company.
The Securities and Exchange Commission is authorised by local laws to develop its own guidelines for the application of laws within its jurisdiction. In addition, the Philippines’ central bank and the country’s insurance regulator are authorised to develop guidelines for the implementation of related laws.
The recent turn of events signifies a continuation of the harsh crackdown that the regulator is exerting on cryptocurrencies.
The Securities and Exchange Commission (SEC) issued a public warning against utilising unregistered exchanges that were functioning inside the nation before the end of December 2022. The commission said that a number of exchanges were “illegally permitting” Filipinos to use their platforms.
The Philippines’ central bank said in August 2022 that it will stop accepting new applications from virtual asset service providers for the next three years. The bank anticipates that it would resume accepting applications on September 1, 2025.