As a crypto investor with experience in the Philippine market, I’m keeping a close eye on the regulatory developments regarding cryptocurrencies in the country. The upcoming guidelines from the Securities and Exchange Commission (SEC) aiming to regulate crypto trading activities and protect investor interests is a step in the right direction.
As a securities analyst, I can tell you that the Philippines Securities and Exchange Commission (SEC), headed by Chairperson Emilio B. Aquino, intends to reveal regulatory guidelines for cryptocurrencies in the second half of 2024.
According to a report from Business World Online, the Philippine authorities aim to issue regulations for cryptocurrency trading with the main objective of safeguarding investors’ interests.
Philippines Continues Crypto Regulation Efforts
The action contributes to the country’s ongoing initiatives to oversee the cryptocurrency market, following in the footsteps of impacting major crypto trading platform Binance. On the 19th of April, the SEC instructed Google and Apple to take down the Binance apps from their respective marketplaces.
In a press release on March 25, the SEC announced approval of a formal request for the National Telecommunications Commission (NTC) to block web pages used by Binance. In the press release, the Commission accused Binance of “actively employing promotional campaigns on social media to attract Filipinos to engage in investment and trading activities using its platforms. It adds that Binance did this without an SEC license needed to accept investments from the public. The SEC also notes that Binance does not have permission to create or operate an exchange for users to buy and sell securities.
Regarding the crackdown, Aquino stated that it is not a targeted campaign against any specific company: instead, it’s a necessary measure.
As a researcher, I would explain it this way: “In order for us to proceed with our plans, we need to obtain the necessary licenses. Our goal isn’t to pursue legal action against these platforms, but rather to fulfill our obligations. We’re taking this approach for all of them, and this is the path we’ve chosen to take.”
It’s intriguing that Aquino acknowledged the use of virtual private networks (VPNs) allows people to bypass the app ban. He conceded that individuals can still utilize these applications, yet emphasized that “no one can hold us accountable” for this circumstance.
As a researcher, I can share that the Securities and Exchange Commission (SEC) chairperson acknowledged learning valuable lessons from the issues experienced by the defunct exchange FTX in November 2022.
Effects of Binance Philippines Ban
Crypto traders in the Philippines are experiencing unease following the country’s ban on Binance. As per Ethan Rose, CEO of Pouch, the Ban aims to shield Filipinos from “harmful elements” in the crypto market. Consequentially, local exchanges may gain traction with increased business and investment, according to Rose. However, he acknowledges that this comes with certain sacrifices. Local traders will encounter higher trading fees and a limited selection of tokens to trade.
The Philippines intends to introduce a central bank digital currency (CBDC) within the next two years, specifically a wholesale version rather than a retail one. As explained by the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, introducing a retail CBDC could exacerbate bank runs during periods of financial instability. In contrast, a wholesale CBDC would enhance the effectiveness of both domestic and international transactions.
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2024-05-06 14:27