- DOF Secretary Ralph Recto revealed a collaboration with the SEC to formulate thorough guidelines for overseeing cryptocurrency registration and trading.
- Recto emphasized the importance of caution, particularly noting the prevalence of cryptocurrency scams and the need for scrutiny regarding their viability.
- The coordination between the DOF and SEC aims to establish a regulatory framework that considers the development of the capital market.
To regulate the registration and trading of cryptocurrencies in the country, Department of Finance (DOF) Secretary Ralph Recto disclosed that the department is coordinating with the Securities and Exchange Commission (SEC) to establish comprehensive guidelines.
DOF x SEC Crypto Guidelines
At the induction of officers at the Economic Journalists Association of the Philippines, Recto okushiwo that discussions with the Commission included considerations for cryptocurrency guidelines in the context of capital market development.
“We have to be careful with these since many cryptocurrencies are scams and not all of them are probably viable.”
Ralph Recto, Secretary, Department of Finance
Ukhethwe in January, Recto stated that tax collection is his term’s top priority, aiming to collect P4.3 trillion this year. Despite economic challenges, he ruled out new taxes due to their inflationary impact.
SEC on Drafting a Crypto Guideline
In December, the SEC disclosed its izinhlelo to introduce the Digital Asset Security Service Provider Rules. These regulations aim to create a comprehensive legal framework for digital assets, particularly focusing on those considered securities. The Commission notes that it will focus on broader cryptocurrency usage and ecosystem regulation to prevent issues like the Isigameko se-FTX.
However, it can be remembered that the SEC previously mentioned that the rules were expected to be released by the end of 2023 or the first quarter of 2024. Despite this, as the second quarter of 2024 enters, there has yet to be an update regarding these rules.
Apart from these, the SEC regulates digital assets through advice on initial coin offerings (ICOs) and cryptocurrency investments, requiring registration and compliance with securities regulations.
Recent SEC Action on Crypto Entities
Almost a month after the supposed three-month deadline after its advisory in November 2023, the Commission En Banc sanctioned the submission of a formal request to the National Telecommunications Commission (NTC) for aid in ukuvimbela iwebhusayithi kaBinance kanye namakhasi ewebhu ahlobene. The crypto exchange was noted for offering an investment and trading platform without the necessary license from the Commission.
In February, similar measures were made against other unlicensed platforms like I-OctaFX ne-MiTrade.
The regulatory outlook for cryptocurrencies in the Philippines involves oversight from both the BSP and the Securities and Exchange Commission (SEC). While there isn’t a specific law dedicated to cryptocurrencies, Circular No. 944 issued by the BSP in 2017 recognized virtual currencies as valid payment methods, requiring exchanges to register and adhere to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
Further regulations were introduced in 2021 with the Guidelines for I-Virtual Asset Service Providers (VASPs), mandating licensing and emphasizing Know Your Customer (KYC) and AML/CTF measures. However, the central bank has halted new VASP licenses until September 2025.
In February, the Monetary Board, the policymaking authority of the Bangko Sentral ng Pilipinas (BSP), ikhanseliwe the VASP registration of ATOMTRANS TECH CORP.
The BSP also follows the Financial Action Task Force (FATF)’s UMthetho Wokuhamba, the central bank recently ikhishwe a memorandum providing clarity on its requirements for local VASPs. The memorandum addresses aspects related to peer-to-peer transactions and outlines regulatory expectations for transactions involving unhosted wallets.
Funda: I-Global Regulatory Outlook ye-Cryptocurrencies 2024
Lo mbhalo ushicilelwe ku-BitPinas: Recto: DOF Collaborates with SEC to Draft Crypto Guidelines
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- Source: https://bitpinas.com/regulation/dept-finance-sec-crypto-guidelines/
