Philippines’ SEC proposes expanded oversight of the crypto industry

The Philippine Securities and Exchange Commission (SEC) intends to bring digital assets within its remit and to introduce tighter oversight of players in the industry. This follows the regulator’s rulemaking proposal that was put up for discussion, Manila Bulletin.

According to the document, the Commission will be empowered to undertake “rulemaking, supervision, inspection, market monitoring and additional enforcement powers.” This is necessary for “the protection of consumers’ interests.”

The guidelines broaden the definition of a security to include “tokenised security-based products or those using blockchain or DLT.”

The regulator’s remit will also cover digital financial products and services accessible via digital channels.

The proposed measures also envisage risk-management systems being integrated by financial-service providers to protect consumer rights. The SEC will be able to limit providers’ ability to charge excessive interest, fees or charges.

The regulator will gain powers to remove employees found to have breached the law and to suspend firm activities.

In December 2022 the SEC warned citizens against using unregistered exchanges operating in the country. The Commission stressed that several platforms “illegally provided” their services to Filipinos.

Earlier in June, Binance CEO Changpeng Zhao announced plans for the exchange to obtain a license in the Philippines.