According to new draft guidelines, the Securities and Exchange Commission (SEC) of the Philippines wants to include crypto in its purview and toughen its control over the local cryptocurrency market.
The securities regulator submitted draft regulations for financial goods and services which include encompassing cryptocurrencies and digital financial products—for public comment on January 25, the Manila Bulletin, a local news source, said.
In a statement, the SEC said that the proposed regulations would put a recently passed legislation into practice and provide it with “rule-making, surveillance, inspection, market monitoring, and additional enforcement capabilities.”
According to the rules, “tokenized securities products” and other financial items created using blockchain or distributed ledger technology now fall within the definition of security (DLT).
The SEC will also have jurisdiction over other financial goods, including digital financial products and services related to those accessible and supplied via digital channels, as well as their suppliers.
The power to enforce securities laws has also been strengthened. Service providers could be prohibited by the SEC from charging excessive interest, fees, or other costs.
The regulator would also have the authority to remove or suspend any directors, executives, or other staff members found to have broken the law. It may potentially force a company to shut down completely.
According to local laws, the SEC, the Philippines’ central bank, and the nation’s insurance regulator may all develop rules to supplement relevant laws. The SEC may also adopt its own rules for the application of laws under its purview.
The most recent move continues the regulator’s stern campaign against cryptocurrencies.
The SEC issued a warning against utilizing unregistered exchanges operating in the nation in late December 2022, alleging that a number of these exchanges were “illegally permitting” Filipinos to use their platforms.
