The Securities and Exchange Commission (SEC) of the Philippines is all set to follow in the footsteps of the UK and launch comprehensive rules for cryptocurrency asset trading in the country. Such a meaningful regulatory move corroborates the SEC’s pledge to increase governance within the increasingly complex crypto ecosystem.
Prioritizing Investor Protection
The forthcoming directives provide an effective framework for investor security procedures. First and foremost, these rules are designed to establish a trading system within the Philippines’ borders that meets the local requirements. The SEC’s removal of Binance-related apps from major stores shows their proactive approach to safeguarding investors who operate outside regulations.
SEC Chair Emilio Aquino recognizes the difficulties brought by virtual private networks (VPNs) in dismantling unregistered platforms. Setbacks notwithstanding, the SEC still bears up its willingness to implement the required licensing and registration for the trading platforms, which is as mandated by the Republic Act No. 8,799 or The Securities Regulation Code.
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Philippines Plans Cryptocurrency Regulatory Framework
The SEC comes up with regulatory approaches based on lessons learned from earlier incidents like the bankruptcy of the FTX crypto exchange in the Bahamas in November 2022. Aquino explains that currency exchange regulation is needed to lower risks and save potential investors from suffering.
With the Philippines planning to start the cryptocurrency regulatory framework soon, the market players and all the stakeholders hold high hopes for getting more requirements and how the present digital asset industry will be affected.
The implication of the upcoming SEC’s guidelines to the Philippine cryptocurrency industry is that the government is now taking steps towards determining a regulatory framework suited to the distinct nature of the cryptocurrency market. The SEC has placed investor protection and regulatory compliance at the forefront of its agenda, as it aims to create a secure and transparent environment to conduct cryptocurrency trading within the country.
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