The Securities and Exchange Commission (SEC) of the Philippines is planning to establish a regulatory framework for cryptocurrencies in the second half of 2024. According to a report, SEC chair Emilio B. Aquino stated that the guidelines would focus on overseeing cryptocurrency trading in the country while ensuring investor protection.
Aquino disclosed this information during discussions regarding the recent crackdown on unlicensed cryptocurrency service providers in the Philippines. Notably, the SEC recently imposed a ban on Binance for offering unregistered securities. As part of the measures against Binance, the SEC has asked both Apple and Google to remove the exchange’s applications from their respective stores. Aquino described this as the commission simply fulfilling its responsibilities, saying, “I hope it’s fast. We already experienced this with lending apps before. The response is quick. It’s up to them (Google and Apple).”
Aquino acknowledged that some traders attempt to circumvent these restrictions by using virtual private networks (VPN) to access Binance’s platform despite the ban. However, he emphasized that the commission cannot be blamed for such actions.
In the cryptocurrency sector, it is common for traders to leverage VPNs to bypass regulatory restrictions. Following the ban on multiple foreign cryptocurrency exchanges in India, users reportedly resorted to this method to access their crypto accounts.
The SEC chair reiterated that all crypto trading platforms in the Philippines must acquire the necessary licenses to operate, in accordance with the Republic Act No. 8799, also known as the Securities Regulation Code (SRC). Aquino clarified that the recent actions are not meant to target any specific platform, but rather to ensure that all platforms fulfill their obligations.
Referring to the collapse of FTX resulting in significant losses for investors, Aquino emphasized the importance of regulation in the Philippines. He noted that incidents like this serve as a lesson for the country, as they are unable to pursue individuals outside their jurisdiction, unlike the United States. Therefore, the Philippines is working towards regulating the cryptocurrency sector to prevent similar occurrences.
In related news, a former advisor to President Biden predicts that cryptocurrency regulation in the United States is imminent.