The Philippine Securities and Exchange Commission (SEC) intends to include crypto under its radar in order to amp up its authority over the crypto industry. This means that the Filipino SEC is seeking to increase its scope of jurisdiction over the local crypto industry according to the new draft rules.
The SEC mentioned in a statement that the draft rules will bring into effect the recently enacted bill and also help with making new rules, increasing surveillance, monitoring the market better, ensuring effective surveillance, and also including more enforcement powers.
Reportedly, the Filipino SEC has put forth these draft rules for public comment. These draft rules are related to financial products and services and take into account crypto, along with other digital financial products.
The new guidance provided by the SEC will help better develop the definition of “security” in order to be inclusive of “tokenized securities products” and other financial products that use blockchain or distributed ledger technology (DLT). Additionally, financial products that include digital financial products and services that are tied to digital channels, along with their respective providers, shall fall under the Filipino SEC’s radar.
SEC’s Other Enforcements Has Also Expanded
The Philippine SEC’s power to enforce securities regulations has also broadened due to the new draft rules. Now, the SEC could put a restriction on service providers, controlling if they are charging excessive interest, fees, or charges.
Additionally, the SEC will also have the authority to disqualify or dismiss directors and suspend executives and any other employees they have found guilty of violating the laws. Not only that, but the SEC will have the authority to halt the firm’s operations if necessary.
Going by the local laws, the SEC could formulate its own rules and regulations for applying legislation in its jurisdiction. Further, the Central Bank of the Philippines and the nation’s insurance regulator have been allowed to make their own rules in order to supplement the related laws.
Philippine Previously Issued Warnings Regarding Unregulated Crypto Exchanges
The newest development comes as the Filipino government has been skeptical of the crypto industry. The SEC has previously issued a public warning stating that consumers should steer clear of any local crypto exchanges that are not registered, hence unregulated.
This warning was issued right after the fall of the renowned crypto exchange FTX. In that warning, the SEC mentioned again that exchanges must follow the existing law, which meant that if any crypto entity wanted to set up business in the country, it was a pre-requisite to register with the SEC first.
This was repeated again because, according to the SEC, many exchanges were targeting Filipino investors through the internet, mainly with social media ads. The SEC also stated that the current unregistered exchanges are operating illegally by letting Filipino investors use their platforms by opening accounts online.
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