According to local media, the regulator intends to take a closer look at the factors that led to the collapse of the FTX exchange in late 2022. SEC Chairman Emilio Aquino confirmed that the new regulations could be in place by the end of 2023, depending on how quickly the safeguards for investors are worked out. To this end, the SEC has signed an agreement with the University of the Philippines Law Center (UPLC), which will also be involved in the lawmaking process.
“We should have issued these rules late last year, but we don’t want people to get burned by investing in crypto-assets. We need to look carefully at digital asset issuance as a form of raising capital, because we are talking about multi-billion dollar flows of funds, like we did with FTX,” Aquino said.
Under the new requirements, virtual asset service providers (VASPs) are expected to comply with strict rules for issuing and holding cryptocurrencies. Licensed firms will be required to disclose required information to local regulators, and the SEC of the Philippines’ authority over the industry will be expanded.
“I believe in digital and emerging technologies.. When there is a regulatory framework, we can allow the development of these technologies. We just need to make sure that investors are protected,” the SEC chairman added.
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The SEC of the Philippines has repeatedly warned the public about unscrupulous players in the cryptocurrency industry. In 2022, the regulator issued more than 80 warnings to firms offering unregistered securities to local residents. The agency recently notified local traders that the cryptocurrency exchange Gemini is operating in the country without registration.<br