Philippines SEC Seeks More Power Over The Crypto Sector
A report published by the local news platform, the Manila Bulletin, reveals that the Philippines Securities and Exchange Commission (SEC) wants to gain more regulatory oversight over the crypto sector. The securities regulator had earlier complained that most crypto platforms operate without a license.
Philippines SEC Submits Draft Rule For Public Comment
According to the Manila Bulletin, the commission has opened public comments for its draft rules regulating financial products. The rule also covers the regulation of digital currencies.
In an official statement, the watchdog said the proposed rules would implement a recently enacted law. Also, it would grant the regulator the powers to make rules, perform surveillance, conduct inspections, monitor the market, and enforce regulations.
Notably, the rules broadened the definition of security to encompass financial products based on Distributed Ledger Technology (DLT) or blockchain and also “tokenized securities products.” As a result, the SEC will have power over digital financial products sent through digital channels and crypto service providers.
The SEC’s enforcement of securities regulations is also broadened in the draft. The draft grants the SEC power to limit service providers from charging excessive fees, interest, or charges.
Also, the regulator would possess the authority to disqualify or temporarily remove executives, directors, or anyone who breaks the law. According to the report, the regulator can also suspend the operations of such a firm.
Additionally, local laws allow the securities regulator to formulate guidelines on applying legislation for assets under its jurisdiction. Similarly, the nation’s insurance regulator and central bank can create guidelines to complement related laws.
Meanwhile, this recent development represents a continuation of the regulator’s stringent enforcement actions against digital currencies.
Philippines SEC Warns About Unregistered Exchanges
Last month, the securities watchdog issued a warning to the public regarding the usage of unlicensed crypto firms. According to the SEC, several crypto exchanges were operating in the country without proper licenses.
Meanwhile, the regulator did not mention the collapse of FTX in the notice. However, it stated that the warning was due to the recent fall of a big crypto exchange platform.
Furthermore, the government agency emphasized that, following the laws of the land, any entity that intends to do business in the Philippines must register with SEC. The agency said:
“The SEC is responsible for overseeing and maintaining records of the corporate sector in the Philippines. As the registrar, the SEC supervises over 600,000 active corporations and carefully evaluates the financial statements submitted by all registered corporations.”
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