In an effort to fortify investor protection and transparency in the cryptocurrency market, the Philippine Securities and Exchange Commission (SEC) has implemented new regulations.
The Philippine Securities and Exchange Commission (SEC) has published a draft of its “Crypto-Assets Service Providers (CASP) Rules.” The objective of these proposed regulations is to oversee the rapidly expanding cryptocurrency market in the nation, with an emphasis on accountability, transparency, and safety. The SEC is soliciting public input to finalise the framework.
The draft defines crypto-assets as digital representations of value that are dependent on distributed ledger technology. The regulations will govern critical activities such as the marketing of cryptocurrencies, public offerings, custody, and trading.
In order to adhere to the Financial Products and Services Consumer Protection Act (FCPA), which intends to safeguard investors, crypto service providers are required to register with the SEC and obtain licenses.
Companies that provide crypto-assets to the public are required to submit comprehensive disclosure documents to the SEC at least 30 days prior to the commencement of marketing for these assets.
The proposed regulations underscore the significance of robust cybersecurity and anti-money laundering protocols. In order to remain vigilant against emergent threats, service providers are required to adhere to the National Cybersecurity Plan and conduct routine system audits.
In addition, the crypto market is bolstered by stringent regulations that serve to prevent insider trading, market manipulation, and fraudulent activities, thereby enhancing trust and integrity.
The Securities and Exchange Commission (SEC) is soliciting input from stakeholders regarding the proposed regulations by January 18, 2025. The objective of this collaborative approach is to establish regulations that are equitable, feasible, and conducive to the expansion of the crypto industry.
The Philippines has emerged as a global leader in the adoption of cryptocurrency due to its youthful and technologically adept populace, with an average age of 25.3 years. Strong regulations are becoming increasingly necessary to mitigate risks such as fraud and manipulation, as more than 562 million individuals worldwide utilise crypto-assets.
The proposed CASP Rules represent a significant advancement in the pursuit of a balance between investor protection and market growth. The Philippines intends to fortify its position in the global crypto market and guarantee the safety and trust of all participants by implementing these measures.
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