Philippines to introduce crypto regulations in 2024, says SEC chair

The Philippine Securities and Exchange Commission (SEC) plans to introduce a regulatory framework for cryptocurrencies in the second half of 2024.

SEC chairman Emilio B. Aquino said the rules will aim to regulate cryptocurrency trading in the country while protecting investor safety, according to a local report.

Aquino made the statement while discussing the commission’s recent crackdown on unlicensed cryptocurrency service providers in the country. Recently, the regulator banned Binance from offering unregistered securities.

As part of the crackdown on Binance, the SEC demanded that both Apple and Google remove the exchange’s apps from their respective stores. Aquino described this move as the commission just “doing its job” and added:

“I hope it’s fast. We’ve had this happen before with lending apps. The response is fast. It’s up to them (Google and Apple).”

Aquino acknowledged that some investors have tried to bypass these restrictions by using “virtual private networks (VPNs),” allowing them to access the Binance platform despite the ban.

“But no one can blame us,” he added.

Investors using VPNs to bypass legal restrictions are quite common in the crypto industry. It has been reported that users have resorted to this method to access their crypto accounts after multiple foreign cryptocurrency exchanges were banned in India.

The SEC chairman reiterated that all crypto trading platforms in the Philippines must obtain the necessary licenses to offer their services. This authority is part of Republic Act 8799, also known as the Securities Regulation Code (SRC).

He clarified that the latest moves are not meant to “select” a particular platform.

“They have to obtain the necessary licenses because the intent is to be able to pursue them to meet their obligations,” the SEC chairman continued.

He also touched on the collapse of FTX, which led to billions of dollars in losses and the “burning out” of many investors. Aquino added that the incident is a lesson for the Philippines, which, unlike the United States, cannot go after people outside their jurisdiction.

Therefore, the country is trying to regulate the cryptocurrency industry.