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In a proposed new set of regulations, the Securities and Exchange Commission (SEC) of the Philippines wants to expand its jurisdiction over local cryptocurrency businesses so that it can regulate cryptocurrencies and place them under its purview.
A report published on a local news website on January 25 said that the securities regulator had issued a draft public comment regulation relating to financial goods and services. This rule covers cryptocurrencies as well as digital financial products, according to the article.
In a statement, the Securities and Exchange Commission (SEC) claimed that the proposed regulations would make the newly passed law effective and provide it with “greater rule-making, oversight, inspection, market monitoring, and enforcement authority.”
The recommendation broadens the definition of security such that it now includes “tokenized securities products” as well as other financial products that use blockchain or distributed ledger technology (DLT).
The SEC will also be responsible for regulating other types of financial goods, including digital financial products and services related to those accessible and supplied through digital channels, and the suppliers of those products and services.
In the same vein, the power to enforce the rules governing securities is enhanced. The SEC has the power to limit the amount of interest, fees, and fees a service provider can collect.
In addition, regulators will have the power to remove from office directors, executives or other employees who are found to have violated the law. In addition, it has the potential to stop all company operations.
The Securities and Exchange Commission is authorized by local law to develop its own guidelines for the application of the law in its jurisdiction. In addition, the Philippines’ central bank and state insurance regulator are authorized to develop guidelines for implementing related laws.
The recent turn of events signals a continuation of the clampdown that regulators are taking on cryptocurrencies.
The Securities and Exchange Commission (SEC) issued a public warning against the use of unregistered exchanges functioning within the country before the end of December 2022. The commission said that a number of exchanges “illegally permitted” Filipinos to use their platforms.
The central bank of the Philippines said in August 2022 it would stop accepting new applications from virtual asset service providers for the next three years. The bank expects to resume accepting applications on September 1, 2025.
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