• The Philippines Securities and Exchange Commission (SEC) has proposed new regulations to regulate virtual currency and digital financial products in the country.
• The regulations broaden the definition of security to include tokenized securities products and other financial instruments based on blockchain or DLT.
• The SEC will have the authority to prevent service providers from levying excessive interest, fees, or other charges, as well as to disqualify and suspend directors, executives, or employees who are found to be in breach of the law.
The Philippines Securities and Exchange Commission (SEC) has proposed new regulations to regulate virtual currency and digital financial products in the country. The proposed regulations are designed to provide the regulator with enhanced authority to oversee the sector and to protect investors.
The regulations would broaden the definition of security to include tokenized securities products and other financial instruments based on blockchain or distributed ledger technology (DLT). This would enable the SEC to regulate these products, as well as any service providers who offer them. The SEC would have the authority to set its own regulations and to prevent service providers from levying excessive interest, fees, or other charges.
In addition, the SEC will be able to monitor and inspect the activities of market participants, and to enforce securities rules. If a director, executive, or employee of a company is found to be in breach of the law, the regulator has the authority to disqualify and suspend them from their positions.
The proposed regulations are intended to provide investors with greater protection, and to ensure that the industry is operating in a fair, orderly, and transparent manner. The public has been invited to comment on the proposed regulations, and the SEC will consider all feedback before finalizing the regulations.
The Philippines has become an increasingly attractive destination for crypto and digital asset investors, and the proposed regulations from the SEC will help to promote investor confidence. The regulations will also help to ensure that the sector is in compliance with existing law, and that the market remains fair for all participants.