The Securities and Exchange Commission of the Philippines (SEC) and the Bangko Sentral ng Pilipinas (BSP), which is the nation’s apex bank, are looking to release the final guidelines to govern cryptocurrency exchanges in the Philippines by next week, as first reported by the Manila Times on September 4, 2018.
Digital Currency Exchanges Regulated as Trading Platforms
According to a Manila Times report, authorities in the crypto-friendly Philippines are on the verge of releasing the final draft rules that would support the growth of the local DLT-based virtual currency industry.
The SEC Commissioner, Ephyro Luis Amatong has reportedly hinted that the agency in collaboration with the Philippines central bank would publish the draft rules regulating cryptocurrency exchanges as trading platforms in the second week of September 2018.
The SEC chief further noted that the regulatory watchdog is currently reviewing the ‘virtual currency exchange (VCE)’ regulatory frameworks of Australia and Switzerland and would possibly tailor its rules according to their templates.
“We already discussed the issue with the central bank since the BSP is also interested and we are also interested. The discussion…[is aimed at having] joint cooperative oversight over VCEs engaged in trading,” he stated.
In July 2018, the Bangko Sentral ng Pilipinas approved the application of two virtual currency exchanges: Exchanges Virtual Currency Philippines, Inc. and ETranss Exchange, increasing the nation’s approved exchanges to five.
Public Concerns Integrated
Per the Manila Times report, the SEC will release the final version of the ICOs and crowdfunding regulation it first published last month, requesting for public comments.
The proposed rules make it compulsory for aspiring ICO organizers to register as business corporations, establish offices in the nation and return invested funds to participants if the project fails to get completed.
In spite of the controversial nature of initial coin offerings (ICOs), the SEC Commissioner, Amatong has made it clear that the nation will continue to support ICOs as the crypto-based fundraising method gives startups a chance to expand their operations and the process is much more comfortable as compared to traditional initial public offerings (IPOs).
“technology will allow smaller companies to raise funds seamlessly. Previously, you had to go through all of the infrastructures of the Philippine Stock Exchange or Philippine Dealing Exchange,” he said, adding that distributed ledger technology and fintech has given startups another cost-efficient lifeline.