Philippines SEC Proposes New Framework to Regulate Crypto
The Philippine Securities and Exchange Commission (SEC) has published a draft version of its “SEC Rules on Crypto-Assets Service Providers (CASP Rules),” seeking public input. The proposal outlines a regulatory framework for the country’s expanding crypto sector, which has seen rapid growth in recent years.
The Philippines has become a global hotspot for cryptocurrency adoption, bolstered by a young and tech-savvy population with a median age of 25. As crypto-assets draw over 562 million users worldwide, the Philippine SEC aims to address risks such as fraud and market manipulation while fostering an environment for innovation.
New Draft Covers Disclosure, Public Offering, Trading and Marketing Activities
The proposed rules define crypto-assets as digital representations of value using distributed ledger technology. Activities such as trading, custody, and public offerings of these assets will be regulated under the new framework.
Service providers must register with the SEC and secure licenses, meeting strict standards that include compliance with the Financial Products and Services Consumer Protection Act (FCPA). Minimum capital requirements and other regulatory obligations are also outlined.
Entities planning to offer crypto-assets to the public must submit comprehensive disclosure documents to the SEC at least 30 days before marketing. These documents must detail the offeror’s profile, the underlying technology, potential risks, and warnings about possible loss of value.
The SEC’s draft rules emphasize cybersecurity and anti-money laundering measures. Service providers are required to align their systems with the National Cybersecurity Plan and undergo regular audits to ensure resilience against emerging threats. Anti-money laundering laws, insider trading prevention, and anti-market manipulation practices are also central to the framework.
Stakeholders are invited to share their feedback on the draft rules by January 18, 2025.
Source: cryptonews.com
