The Philippines Securities and Exchange Commission (SEC) has proposed new crypto rules which cover all forms of digital products. Currently, the draft of the proposed rule is available for public comment before it is completed.
The proposed rule is expected to apply to all financial products and services, as well as financial service providers, that fall under the SEC’s purview according to reports from the Manila Bulletin.
In addition to protecting the investments of customers, the new rule is also anticipated to strengthen the SEC by providing them with access to increased enforcement capabilities. In accordance with the proposed rules, the SEC will be able to take additional enforcement measures, such as removing directors and employees from their positions.
Furthermore, the SEC can also impose fines, suspensions, or other penalties, and limit the abilities of financial service providers to charge excessive or unreasonable interest rates.
Financial service providers are also required to set up a Financial Consumer Protection Assistance Mechanism (FCPAM) to give free support to financial customers with regard to issues with financial transactions, such as grievances, questions, and requests.
The Adoption of Crypto in the Philippines
The development of the blockchain industry in the Philippines is still in its early stages, however, it is growing. The government and central bank are actively investigating how blockchain technology may be used to improve financial services, remittances, and other industries.
The call for tighter regulations is due to concerns over money laundering, consumer protection, market stability, and illicit activities such as tax evasion and fraud. In December, the International Monetary Fund (IMF) also called for stronger consumer protection laws in Africa.
Additionally, there are several startups and organizations working on blockchain-based solutions in the country, and a growing number of talents with blockchain skills. For example, the Philippines now has six digital banks that are permitted to conduct business in the country.
The Qatari National Bank (QNB) has also expanded Ripple’s remittance technology and capabilities into the Philippines with the help of the blockchain payment firm RippleNet. The new service offering will allow Filipino nationals living in Qatar to send money home more quickly.