The Securities and Exchange Commission (SEC) has delayed the launch of the long-awaited crypto regulatory framework in the Philippines.
Despite the wave of market failures in 2022, the country’s financial authority has decided not to rush the publication of the legal framework for the crypto industry.
The regulatory authorities are still developing the criteria for the framework, and they may disclose the results sometime this year. In a local media outlet, Emilio Aquino, the chairman of the Philippines SEC, announced that they had postponed the earlier deadlines for establishing the crypto framework.
The regulatory body postponed its efforts to investigate the reasons behind the collapse of the FTX exchange and ensure investor protection, as it aimed to publish the rules for the sector in 2022.
Aquino emphasized the need to prevent people from suffering losses and mentioned that they might still release the framework by the end of 2023. In collaboration with the University of the Philippines Law Center (UPLC), the SEC worked on developing standards for digital assets earlier in 2023.
In January 2023, the regulatory body presented the Implementing Rules and Regulations of Republic Act No. 11765, which became law in 2022, for public comment.
However, the act does not mention “crypto” or “blockchain.” The Philippine cryptocurrency market has faced increasing challenges. Both the SEC and the country’s central bank have issued warnings against engaging in transactions with unlicensed or foreign cryptocurrency exchanges.
In May 2023, the SEC classified Gemini Derivatives as an unregistered security product under domestic law. Despite the challenges, the Philippines remains an attractive location for cryptocurrency.
With over 11.6 million Filipinos holding digital assets, the country boasts one of the fastest-growing economies in the world and ranks 10th globally in cryptocurrency adoption.
