The Philippines SEC makes its new move amid growing uncertainty in the crypto space.
Under new draft guidelines, the Philippine Securities and Exchange Commission (SEC) seeks to include cryptocurrencies in its jurisdiction and strengthen its authority over the local cryptocurrency industry.
The SEC in a statement said the draft rules will operationalize a recently enacted bill and provide it with “rule-making, surveillance, inspection, market monitoring, and more enforcement powers.”
Philippine SEC submits draft rules for crypto regulation
According to a report in the Manila Bulletin, the securities regulator has submitted draft rules relating to financial products and services for public comment, which include cryptocurrencies and digital financial products.
The guidelines broaden the definition of a security to include “tokenized securities products” as well as other financial products based on blockchain or distributed ledger technology (DLT).
The most recent development continues the regulator’s stern campaign against cryptocurrencies.
The Philippine government cautioned local investors against using unregulated crypto exchanges at the height of the FTX collapse.
Similarly, the capacity to enforce securities legislation has been expanded. The SEC would have the authority to prohibit service providers from charging excessive interest, fees, or charges.
The regulator would also have the authority to disqualify or dismiss directors, executives, or any other employee who violated the laws. It might potentially put a company’s entire business on hold.