Despite the wave of market failures in 2022, the Philippine financial regulator has decided not to rush to put in place a legal framework for the cryptocurrency industry, initially scheduled to be published in late 2022. However, work on the guidelines is still ongoing, and the results could be announced this year.
Quote In a local media outlet, Philippine Securities and Exchange Commission (SEC) Chairman Emilio Aquino revealed that previous deadlines for filing a crypto framework in the country have been changed. The regulator was planning to provide guidance to the industry in 2022, but it has held back the initiative to study the reasons behind the collapse of the FTX exchange and ensure that investors are protected.
However, according to Aquino, the framework may still be released by the end of 2023:
We didn’t lock the door. We really just have to make sure people don’t get burned.”
Earlier in 2023, the Securities and Exchange Commission (SEC) partnered with the University of the Philippines Law Center (UPLC) to work together on guidelines for digital assets. In January 2023, the regulator released the implementing rules and regulations of Republic Act No. 11765 for public comment, which is signed into law in 2022. However, the law itself does not contain a single reference to “crypto” or “blockchain.” ”
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There has been increasing pressure on the cryptocurrency industry in the Philippines. The country’s central bank is urging citizens not to engage in any transactions with unregistered or foreign crypto exchanges, and the Securities and Exchange Commission made the same recommendations. In May 2023, the Securities and Exchange Commission called Gemini Derivatives an unregistered security product under national law.
However, the country remains an attractive destination for cryptocurrency. It is one of the fastest growing economies in the world, with more than 11.6 million Filipinos holding digital assets, placing it in the 10th largest global adoption of cryptocurrency.
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