The Philippines' securities landscape is set for a significant transformation with the announcement of a forthcoming regulatory framework for crypto assets and trading. SEC Chair Emilio Aquino disclosed plans to issue this framework by the second half of 2024, marking a pivotal step towards integrating digital currencies into the country's financial oversight mechanisms.

Crackdown on Unregistered Platforms

In recent months, the Philippine SEC has intensified its scrutiny of cryptocurrency platforms, targeting those operating without proper registration. A notable action included efforts to remove Binance-linked applications from the Apple and Google app stores, citing the risk these unregistered platforms pose to Filipino investors. Aquino emphasized the illegality of selling unregistered securities and operating as an unlicensed broker under Republic Act No. 8799, The Securities Regulation Code.

"The SEC has identified [Binance] and concluded that the public's continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos," Aquino stated.

The SEC's stance underscores the importance of compliance with local regulations, highlighting the necessity for trading platforms to obtain proper licenses and registration. Despite the challenge posed by users accessing unregistered platforms via VPNs, the SEC remains committed to enforcing its regulations.

Lessons from the FTX Collapse

The collapse of FTX, a Bahamas-based crypto exchange, in November 2022, serves as a cautionary tale that has informed the Philippine SEC's regulatory approach. Aquino mentioned that the SEC is drawing lessons from the FTX debacle to enhance its regulatory framework, aiming to prevent similar incidents from affecting Filipino investors.

The upcoming regulatory framework is expected to bring clarity and security to the Philippines' crypto market, ensuring that the interests of investors are protected while fostering a compliant and vibrant digital asset ecosystem.