Home 2023 Filipino Securities Commission Expands Its Authority to Better Examine the Crypto Industry

Filipino Securities Commission Expands Its Authority to Better Examine the Crypto Industry

by John Heffernan

The Philippine Securities and Exchange Commission (SEC) is the registrar and overseer of the Philippine corporate sector; it supervises more than 600,000 active corporations and evaluates the financial statements (FS) filed by all corporations registered with it.

(SEC) seeks to incorporate crypto under its purview in order to strengthen its grip on the cryptocurrency business. According to the new draft guidelines, the Philippine SEC is attempting to broaden its control over the local crypto business.

The SEC stated in a statement that the draft regulations will implement the recently approved bill as well as aid in the development of new rules, increased surveillance, greater market monitoring, assuring effective surveillance, and the inclusion of stronger enforcement authorities.

The Philippine SEC has also released these draft guidelines for public feedback. These proposed guidelines apply to financial goods and services and include cryptocurrencies as well as other digital financial products.

The SEC’s new guidance will assist to further develop the definition of “security” to include “tokenized securities products” and other financial products that employ blockchain or distributed ledger technology (DLT). The Philippine SEC will scrutinize financial goods such as digital financial products and services linked to digital channels, as well as their suppliers.

SEC Expansion on Other Enforcements

The new draft rules have expanded the Philippine SEC’s authority to enforce securities legislation. The SEC may now impose restrictions on service providers, limiting whether they charge excessive interest, fees, or charges.

The SEC has the right to disqualify or terminate directors, and suspend executives and workers found guilty of breaking laws. Moreover, the SEC will have the right to suspend the firm’s activities if required.

The SEC may indeed establish its own rules and regulations for applying legislation in its jurisdiction based on local laws. The Central Bank of the Philippines and the country’s insurance regulator have the authority to create regulations to supplement relevant legislation.

Unregulated Crypto Exchanges Were Warned

The latest development comes as the Philippine government remains suspicious of the cryptocurrency business. The SEC issued a public warning advising customers to avoid unregistered and unregulated local crypto exchanges.

This warning was published shortly after the collapse of the well-known cryptocurrency exchange FTX. In that warning, the SEC reiterated that exchanges must abide by current law, which meant that any crypto firm wishing to do business in the nation had to first register with the SEC.

The SEC repeated the warning due to numerous exchanges recruiting Filipino investors through social media advertisements, mostly over the internet. According to the SEC, the present unregistered exchanges are functioning unlawfully by allowing Filipino investors to access their platforms by registering accounts online.

If you would like to speak to a professional on Cryptocurrency, contact KXCO.IO.

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