The Philippines Securities and Exchange Commission (SEC) is aiming to publish draft regulations by the end of next week, permitting cryptocurrency exchanges to operate as trading platforms.
‘We See the Need to Regulate Them as Trading Platforms’
Rising interest in the crypto market has seen the country’s SEC look at it with fresh eyes. According to Ephyro Luis Amatong, SEC Commissioner, the agency is planning to release draft rules by next week.
In a report from The Manila Times, Amatong said:
We see the need to regulate them as trading platforms.
Looking to countries such as Switzerland and Australia, the Philippines is considering the rules they already have in place. Additionally, the SEC is reportedly working with the country’s central bank, the Bangko Sentral ng Pilipinas (BSP), to regulate them.
We already discussed the matter with the BSP since the BSP is also interested and we are also interested. The discussion … [involves]joint cooperative oversight over VCEs [Virtual Currency Exchanges] engaged in trading.
News of this comes five months after the Philippines Insurance Company (IC) issued a warning about the risks of trading in cryptocurrencies. In April, it was reported that the company issued a warning on its website. At the time, it stated that cryptocurrencies can be used in illegal activities. Not only that, but it argued that they weren’t suitable investments.
However, despite this, the SEC seems intent to regulate crypto exchanges.
Last month, the Philippines SEC published draft rules regarding the regulation of initial coin offerings (ICOs). This included how they are used to raise funds.
Notably, it states that it considers all tokens in ICOs as securities unless it’s stated otherwise. Commenters had until the end of August to submit their views on the draft rules. It noted, however, that the aim is to stamp out fraudulent ICO projects and to protect investors from potential scams.
According to The Manila Times, the SEC is expected to release the final version of its ICO rules next week after considering public comments.
Unlike other countries, the Philippines is taking a positive stance towards the crypto market. It is also embracing the blockchain. In recent news, the Union Bank of the Philippines was reported to be using the distributed technology to cut operational costs.
What do you think of the Philippines working to regulate crypto exchanges as trading platforms? Let us know in the comments below.
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