Philippines’ financial regulators remain cautious amidst failures in 2022, opting not to hastily introduce a legal framework for the crypto industry as originally intended for late 2022. Nevertheless, efforts to develop guidelines are underway with the possibility of unveiling them to the public this year.
The chairman of the Philippines Securities and Exchange Commission (SEC), Emilio Aquino, disclosed that the deadlines for implementing the crypto framework in the country were revised, as reported by a local media outlet.
Originally slated for 2022, the regulatory authority decided to postpone the introduction of guidelines in order to thoroughly investigate the factors contributing to the FTX exchange’s collapse and prioritize protection.
Aquino indicated that there is a possibility of releasing the framework by the conclusion of 2023. “We haven’t closed the door. We really just have to make sure people don’t get burned.”
In early 2023, the SEC collaborated with the University of the Philippines Law Center (UPLC) to jointly develop guidelines for digital assets. In January 2023, the regulatory presented the Implementing Rules and Regulations of Republic Act No. 11765 for public feedback. It is worth noting that the act, enacted in 2022, does not explicitly mention “crypto” or “blockchain.”
The crypto industry in the Philippines is facing increasing scrutiny and pressure. The central bank of the country has been actively advising citizens against participating in transactions with unregistered on foreign crypto exchanges, and the SEC has echoed these recommendations. In May 2023, the SEC classified Gemini Derivatives as an unregistered security product in accordance with national regulations.
Despite the challenges, the Philippines continues to be an appealing hub for the crypto industry. With its status as one of the fastest-growing economies globally, the country has garnered attention as a favorable destination. Notably over 11.6 million Filipinos are proud owners of digital assets, placing the nation at the 10th position globally in terms of crypto adoption.
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