SEC: Crypto trading still allowed in PH
Cryptocurrency trading will continue in the Philippines after the Securities and Exchange Commission (SEC) clarified the coverage of its new rules covering the rapidly evolving industry.
In an advisory on Monday, the SEC noted that trading of the asset class was not prohibited as long as service providers were registered with the regulator.
The Crypto Asset Service Providers (CASP) rules, which took effect on July 5, require platforms to register with the commission and obtain appropriate licenses before offering their services in the country.
“This ensures that investors are protected, market integrity is upheld and all market participants operate on a level playing field,” the SEC said.
It also pointed out that the rules allowed the SEC to “investigate and take action” against unregistered CASPs, including limiting access to their platforms.
“We recognize the importance of a free, competitive market, but one that is responsibly regulated to protect investors and support the sustainable growth of the crypto industry in the Philippines,” the commission added.
Under the guidelines, a corporation needs to have a minimum paid-up capital of P100 million in cash or property, excluding crypto assets.
Cryptocurrency saw widespread popularity during the pandemic, when the number of crypto users in the Philippines reached around 750,000, the SEC said.
Data from global blockchain analysis firm Chainalysis showed that in October last year, the Philippines ranked eighth in the world in terms of cryptocurrency adoption. It was higher than its neighbors in Asia, such as Thailand (16th) and South Korea (19th).
Binance, one of the world’s largest crypto markets, was among the first in the industry to be banned in the Philippines, even prior to the implementation of the new rules.
Last year, the SEC requested the removal of Binance from the Google Play Store and Apple App Store after finding that it had not secured a license to solicit investments.
Registered in the Cayman Islands, Binance allows users to buy and sell more than 402 cryptocurrencies, including Bitcoin and Ether.
