The Philippines Securities and Exchange Commission (SEC) is set to unveil new draft rules for cryptocurrency exchanges. Ephyro Luis Amatong who is an SEC Commissioner reported that the draft rules will be released before mid-September. He also said that the agency intends to release the final regulations by the end of 2018.
Philippines Securities and Exchange Commission considers exchanges as trading platforms
Philippines Securities and Exchange Commission will soon regard the digital currency exchanges as conventional trading platforms. Amatong revealed that the commission has seen it necessary to regulate the exchanges like trading networks. The commissioner stated, “Virtual currency exchanges (VCEs) have licenses similar to that of money changers. They can exchange from cryptocurrency to fiat currency. But many of the VCEs, all of the VCEs are applying to allow them to act as trading platforms.”
For the past two years, the Philippian authorities have been pondering on ways of regulating the digital currency sector. Hence, they have come up with a framework for regulating initial coin offerings (ICOs). Additionally, they have set out rules for registering new digital currency exchanges. These latest draft rules are meant to control the exchanges that provide trading services.
In regulating the exchanges, the SEC will be partnering with Bangko Sentral ng Pilipinas (BSP). It is the Central Bank of the Philippines. Amatong revealed they have held discussions with BSP since it is also interested in regulating. Jointly, the two will hold a single cooperative oversight over crypto trading exchanges.
Coins considered as security
As per the ICO draft rules, coins issued by startup firms will be considered as security. Consequently, they will be guided by the Securities Regulation Code. Thus, they will be applied to the SEC and provide disclosures to safeguard the investors.
Following public commentary, the SEC is set to publish the final ICO draft rules by next week. The rules will provide small businesses with an opportunity to raise the required capital. Furthermore, the rules will aid in safeguarding investors money.
Meanwhile, the move will earn the Philippines a huge amount of revenue stemming from license fees.
