The Philippine Securities and Exchange Commission (SEC) aims to include cryptocurrencies in its scope and strengthen its authority over the local cryptocurrency sector with a new draft standards.
According to a January 25 report in a local news outlet, the securities regulator has submitted for public comment draft rules relating to financial products and services, which also cover cryptocurrencies and digital financial products.
The SEC stated in a statement that the draft rules will put into practice a newly signed law and give it “powers of standard making, surveillance, inspection, market supervision and more enforcement powers”.
The guidelines expand the definition of security to include “tokenized security products” or other financial products that use blockchain. or distributed ledger technology (DLT).
Other financial products, including digital financial products and services related to those accessed and provided through digital channels together with their providers, will also fall within the purview of the SEC.
The ability to enforce securities regulations is also expanded. The SEC could restrict service providers from charging excessive interest, fees or expenses.
The regulator will also have the power to disbar or suspend directors, officers or any other employee who violates the law. It could also suspend all activity of a company.
Local laws allow the SEC to create its own rules to apply the law in its jurisdiction.and the central bank of the Philippines and the country’s insurance regulator may also create regulations to supplement related laws.
The latest development marks a continuation of the regulator’s strong crackdown on cryptocurrencies.
In late December 2022, the SEC advised the public not to use unregistered exchanges operating in the country.claiming that various exchanges were “illegally allowing” Filipinos to access their platforms.
In August 2022, the Philippine central bank said it was taking a three-year break from accepting new applications from virtual asset service providers.and the process was expected to reopen on September 1, 2025.
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