Philippine Securities Regulator Seeks More Powers to Oversee Crypto Industry

The Philippine Securities and Exchange Commission (SEC) seeks to include cryptocurrencies in its scope and strengthen its authority over the local cryptocurrency industry under new draft rules.

Local news outlet Manila Bulletin reported on Jan. 25 that securities regulators are seeking public comment on proposed rules for financial products and services that also cover cryptocurrencies and digital financial instruments.

In a statement, the SEC said the draft rule would operationalize the newly signed law and grant “rulemaking, oversight, inspection, market surveillance, and more enforcement powers.”

The guidelines expand the definition of securities to include “tokenized securities” or other financial instruments that use blockchain or distributed ledger technology (DLT).

Other financial products and their providers, including digital financial products and services related to those accessed and delivered through digital channels, are also subject to the authority of the SEC.

The ability to enforce securities regulation will be expanded as well. The SEC will be able to restrict service providers from collecting excessive interest, fees, or charges.

Regulators also have the power to disqualify or suspend any director, officer or other employee found to be in violation of the law. It may also stop operations for the entire company.

Local law allows the SEC to make its own rules to apply the law in its jurisdiction, and the central bank of the Philippines and the national insurance regulator also make rules to supplement relevant laws. I can.

Related: Navigating the Crypto World: Tips to Avoid Scams

The latest developments mark the continuation of the regulatory crackdown on cryptocurrencies.

In late December 2022, the SEC banned the use of unregistered exchanges operating in the country, arguing that many exchanges were “illegally allowing” Filipinos access to their platforms. warned in general.