• The Philippines‘ Securities and Exchange Commission (SEC) has proposed new regulations to expand its purview to include virtual currencies and to increase its control over the country’s crypto space.
• The SEC’s rule-making, surveillance, inspection, market monitoring, and more enforcement powers would be enhanced by the legislation.
• The regulations broaden what constitutes security to include tokenized securities products and other financial instruments based on blockchain or distributed ledger technology (DLT).

The Philippines Securities and Exchange Commission (SEC) has proposed a new set of regulations to expand its purview to include virtual currencies and to increase its control over the country’s crypto space. The proposed regulations, which were reported by local media source Manila Bulletin on January 25, encompass financial goods and services, including cryptocurrency and digital financial products, and are open for public comment.

SEC Chairman Jay Clayton said in a statement that the agency’s „rule-making, surveillance, inspection, market monitoring, and more enforcement powers“ would be enhanced by the legislation. The SEC’s purview will expand to include other types of financial goods and services, including digital financial products and services, and the companies that deliver them. Furthermore, the regulations broaden what constitutes security to include „tokenized securities products“ and other financial instruments based on blockchain or distributed ledger technology (DLT).

The SEC will have the authority to prevent service providers from levying excessive interest, fees, or other charges. If a director, executive, or employee is found to be in breach of the law, the regulator has the authority to disqualify and suspend them from their positions. It may also lead to financial penalties, including fines or other sanctions, being imposed.

The SEC has also upgraded its capacity to enforce securities rules. This includes enhanced powers to inspect and monitor markets, as well as the ability to take enforcement actions against firms or individuals found to be in violation of securities laws.

The proposed regulations are open for public comment and are expected to come into effect later this year. The SEC’s move is seen as a positive step towards the legitimization of virtual currencies in the Philippines and the development of a secure, transparent, and reliable crypto sector.