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Philippine SEC Drafts Rules to Strengthen Crypto Regulations
The Securities and Exchange Commission (SEC) of the Philippines has released draft legislation aimed at fortifying the country’s burgeoning crypto economy. The proposed “Crypto-Assets Service Providers (CASP) Rules” concentrate on licensing, transparency, and market integrity.
In an effort to curb unregulated activities in the sector, the SEC is seeking public feedback on the new regulations until January 18, 2025. The rapid growth of the industry, with local crypto users leaping from 7.1 million to 10.49 million within a year, underscores the necessity for robust legislative measures.
The proposed rules prioritize mandatory registration and licensing for crypto service providers, thereby ensuring that only authorized businesses operate in the country. Furthermore, any entity planning to provide public crypto assets is required to submit thorough disclosure reports to the SEC at least 30 days prior to sales or marketing efforts. These reports must include essential information on the issuer, asset characteristics, potential risks, and fundamental technology.
Moreover, the regulations explicitly prohibit insider trading, market manipulation, and the dissemination of false information, thereby supporting market integrity. The draft also demands compliance with anti-money laundering (AML) rules and cybersecurity standards in accordance with the National Cybersecurity Plan to tackle security concerns. Regular audits will guarantee that service providers maintain robust defenses against emerging risks.
Violations of these regulations are met with severe penalties, including fines ranging from PHP 50,000 to PHP 10 million and possible imprisonment for key officials.
The proposed regulations aim to promote a safer and more transparent environment for the growth of the crypto sector in the Philippines.
Source: www.crypto-news-flash.com
