Philippines Securities Regulator Seeks More Authority to Regulate Crypto Industry

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The Philippines Securities and Exchange Commission (SEC) is seeking to bring cryptocurrencies into its jurisdiction and strengthen its authority over the local cryptocurrency industry under new draft rules.

According to a Jan. 25 report in a local media outlet, the Manila Bulletin, the securities regulator has submitted for public comment draft rules for financial products and services that also cover cryptocurrencies and digital financial products.

The SEC said in a statement that the draft rules would operationalize a newly signed law and give it rulemaking, oversight, inspection, market surveillance and more enforcement powers.

The guidelines expand the definition of a security to include tokenized securities products or other financial products using blockchain or distributed ledger (DLT) technology.

Other financial products, including digital financial products and services related to those accessible and provided through digital channels with their providers, will also fall under the SEC’s mandate.

The headquarters of SEC Philippines in Makati, Metro Manila. Image: SEC

The ability to enforce securities regulations is also expanded. The SEC would be able to prevent service providers from charging excessive interest, fees or charges.

The regulator would also have the power to disqualify or suspend directors, officers or any other employees found guilty of violating the laws. It could also suspend a company’s entire operations.

Local laws allow the SEC to create its own rules to enforce laws in its jurisdiction, the central bank of the Philippines and the country’s insurance regulator are also allowed to create rules to supplement related laws.

Related: Navigating the Crypto World: Tips to Avoid Scams

The latest development marks the continuation of the regulator’s heavy-handed crackdown on cryptocurrencies.

In late December 2022, the SEC warned the public against using unregistered exchanges that operated in the country, saying that a number of exchanges were illegally allowing Filipinos to access their platforms.

In August 2022, the central bank of the Philippines announced that it was taking a three-year hiatus from accepting new Virtual Asset Service Provider (VASP) applications, with the process set to reopen on September 1, 2025.

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