Philippine Securities Regulator Requests More Power to Monitor Crypto Market

The Philippine Securities Exchange Commission (SEC) is seeking to gain control of cryptocurrencies within its jurisdiction and strengthen its authority over the local crypto market with the help of new draft guidelines.

As reported by Manila Bulletin on Jan. 25, a draft of regulations was proposed by the securities regulator for public opinion on financial services. It also includes digital currencies and financial products.

The SEC stated in an announcement that the draft regulations will bring into effect a recently signed law. “rulemaking, oversight, inspection, market monitoring and further enforcement powers.”

The rules are designed to define a security that could encompass “tokenized security products” or any other financial product that uses blockchain or distributed ledger technology (DLT).

Moreover, the SEC may also have authority over financial products as well as digital financial service providers that can be accessed via digital channels and their suppliers.

The statute also expands the regulator’s capacity to implement securities regulations. The SEC may restrict the ability of service providers to charge excessive interest, fees, or expenses.

The regulator would also be able to suspend or terminate officers and directors who are in violation of the laws. This could affect all aspects of the organization’s operations.

Local laws permit the SEC to develop its own rules to apply the law under its jurisdiction. The national insurance regulator is the SEC. The rules can be formulated by the central bank to supplement laws.

Related: Navigating How to steer clear of scams in the crypto sphere

The regulator continues to crack down on cryptocurrencies with the latest development.

In late December 2022, the SEC warned the public against using unregistered exchanges that operate across the country. “illegally allowing” Filipino citizens to access their platforms.