Philippines Prepares to Announce Final Draft for the Regulation of Cryptocurrencies

The future of cryptocurrencies in the Philippines would be determined in the next few days, as the nation’s Securities and Exchange Commission (SEC) prepares to announce draft rules for the nascent industry.

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The future of cryptocurrencies in the Philippines would be determined in the next few days, as the nation’s Securities and Exchange Commission (SEC) prepares to announce draft rules for the nascent industry.

The Philippines to regulate cryptocurrencies soon

According to local media outlet The Manila Times, the Securities and Exchange Commission of the Philippines would be releasing its much-anticipated draft for the regulation of cryptocurrencies in the South Asian nation.

According to The Manila Times, the legal framework proposed by the Philippine SEC could see cryptocurrency exchanges begin to operate as trading platforms.

Commissioner of the Philippine Securities and Exchange Commission, Ephyro Luis Amatong previously emphasized that the regulatory body recognizes the need to regulate crypto exchanges as traditional trading platforms.

If the draft regulation complies with past efforts to adopt cryptocurrencies in the Philippines, it would have a major role to play in establishing the Philippines as a crucial player in the growing crypto industry.

The Philippines and cryptocurrencies

The Philippines has been one of the most welcoming countries to cryptocurrencies, and the proposed draft follows a call from Philippine lawmakers for the creation of an organized regulatory framework for Initial Coin Offerings (ICO).

Like other countries opening up to the new technology, regulatory officials in the Philippines understand the need to create an efficient legal framework for ICOs to protect its citizens from scams and gainfully develop the economy of the country.

Luis Amatong has noted that the Securities and Exchange Commissions and the central bank of the Philippines, the Bangko Sentra ng Pilipinas (BSP) are combining efforts to develop the right legal framework.

The BPS and the Philippine SEC partnered to create a cooperative oversight, as the nation builds a framework for regulating cryptocurrencies. Amatong explains their partnership:

“We already discussed the matter with the BSP, since the BSP is also INTERESTED and we are also interested […] The discussion […] [involves] joint cooperative oversight over [cryptocurrency exchanges] engaged in trading.”

Legislation of cryptocurrencies in the Philippines

The final draft which will soon be announced has been a work-in-progress, and the latest attempt by the Philippine SEC’s to regulate the cryptocurrency sector.

Following the example set by the United States and other countries, the Philippine SEC announced the legalization of virtual currencies, and began classifying them as securities in November 2017.

Startups based outside the Philippines would have to register a branch within the country, and companies would be required to submit their requests at least 90 days before the sale.

In the next 20 days after submission, the SEC will review the request and provide its findings in a written report.

The August report also specifies that registration with the SEC would not be compulsory if the ICO were only to be distributed among 20 people or less.

The Philippine SEC has been developing a legislative framework since 2017, and the final draft is expected to propose a clear set of rules for the regulation of cryptocurrencies.

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