Emilio B. Aquino, chair of the Philippine Securities and Exchange Commission (SEC), has unveiled plans to institute comprehensive regulations governing cryptocurrencies by the latter half of 2024.
Aquino’s statement reported locally, outlined the SEC’s intent to establish a robust regulatory framework aimed at overseeing cryptocurrency trading within the country while prioritizing investor protection.
The disclosure came in the wake of the SEC’s recent crackdown on unlicensed cryptocurrency service providers operating within Philippine borders, culminating in the prohibition of Binance, a prominent cryptocurrency exchange, for its unauthorized offering of securities.
Aquino stressed the urgency of the regulatory process, drawing parallels to previous actions taken against unlicensed lending apps, and expressed hope for expeditious cooperation from tech giants Apple and Google in removing Binance’s applications from their platforms.
Acknowledging the persistence of traders resorting to virtual private networks (VPNs) to circumvent regulatory measures, Aquino reaffirmed the SEC’s commitment to enforcing compliance and safeguarding the integrity of the financial market.
Despite potential attempts to evade restrictions, Aquino emphasized the regulatory imperative and absolved the SEC of culpability in such instances.
The prevalence of VPNs as a workaround tactic mirrors similar trends observed in other jurisdictions, notably following India’s ban on multiple foreign cryptocurrency exchanges, wherein users resorted to similar methods to maintain access to their digital assets.
Aquino reiterated the mandatory licensing requirement for all cryptocurrency trading platforms operating in the Philippines, mandated under Republic Act No. 8799, commonly known as the Securities Regulation Code (SRC).
Dispelling misconceptions of targeting specific entities, Aquino stressed the universal applicability of regulatory mandates aimed at ensuring compliance and accountability across the sector.
Drawing attention to the catastrophic fallout from the collapse of FTX and subsequent investor losses, Aquino underscored the imperative for regulatory oversight to mitigate systemic risks and protect stakeholders from future crises.
Highlighting the limitations of jurisdictional reach, particularly in comparison to more robust regulatory frameworks such as those in the United States, Aquino stated the urgency of implementing regulatory measures to fortify the Philippine cryptocurrency sector against potential threats.