• The Philippines Securities and Exchange Commission (SEC) has proposed new regulations to increase its control over the country’s crypto space.
• The regulations broaden the definition of security to include tokenized securities products and other financial instruments based on blockchain or distributed ledger technology (DLT).
• The SEC is given the authority to establish its own regulations, enforce securities rules, prevent service providers from levying excessive interest, fees, or other charges, and disqualify/suspend directors, executives, or employees who are found to be in breach of the law.
The Philippines Securities and Exchange Commission (SEC) has proposed new regulations that would expand its purview to include virtual currencies and increase its control over the country’s crypto space. According to local media source Manila Bulletin, the SEC has proposed the regulations concerning financial goods and services, including cryptocurrency and digital financial products, for public comment.
The regulations proposed by the SEC are aimed to give the regulator extensive power for better control. SEC Chairman Jay Clayton said in a statement that the agency’s „rule-making, surveillance, inspection, market monitoring, and more enforcement powers“ would be enhanced by the legislation. The regulations also broaden what constitutes security to include tokenized securities products and other financial instruments based on blockchain or distributed ledger technology (DLT). Moreover, the SEC’s purview will expand to include other types of financial goods and services, including digital financial products and services, and the companies that deliver them.
In order to ensure the effective implementation of the new regulations, the SEC has been given the authority to establish its own regulations, enforce securities rules, prevent service providers from levying excessive interest, fees, or other charges, and disqualify/suspend directors, executives, or employees who are found to be in breach of the law. The SEC also has the right to initiate investigations, order corrective measures, and impose penalties on violators.
The proposed regulations have been put forward for public comment, and the SEC is expected to incorporate the feedback before finalizing the regulations. The SEC hopes that the new regulations will help create a more secure and transparent crypto sector in the country.
