SEC gets 3rd ‘sandbox’ applicant
A third company has submitted its application to the Securities and Exchange Commission (SEC) to test its new product via the agency’s regulatory “sandbox,” potentially bringing a new service meant to help improve information technology (IT) and capital market capabilities in the country.
SEC Commissioner McJill Bryant Fernandez told reporters last week they had already approved two sandbox applications since launching their project in April last year.
“We’re just waiting for the respective platforms to be completed because they need to develop their IT platform,” Fernandez said.
The SEC’s strategic sandbox is a regulatory tool that allows participants to test their new product, service or business model in a controlled environment, thus preventing “real-world” consequences, although their proposal must not be prohibited under Philippine law.
It essentially functions as a playground for businesses, particularly those that “demonstrate genuine innovation” that would increase efficiency, manage risks better, prevent fraud and promote financial inclusion, the SEC said in its circular.
This was introduced under SEC Memorandum Circular No. 9 Series of 2024, which officially launched the corporate watchdog’s Stratbox project.
While Fernandez kept quiet on the identity of the two approved participants, he confirmed that there was a third applicant.
“We haven’t approved them yet, but we’re refining their proposal. We want to launch it soon,” he added.
Last month, the SEC opened applications for cryptocurrency asset service providers (CASPs) to participate in its Stratbox project.
Based on the regulator’s April 11 notice, those that may apply are cryptocurrency exchanges, virtual asset custodians and other related service providers.
Crypto services
This comes months after the SEC proposed rules for the registration of CASPs that would allow another layer of protection for investors looking at crypto as an alternative financial product.
Under the proposed rules, a person or company may only provide crypto asset services in the country after securing a license from the SEC.
Among the requirements for a CASP to be qualified for registration are that it must be a stock corporation registered with the SEC, have at least four staff members based in the Philippines, meet the minimum capital requirements, and submit a complete application for authorization to the agency.
SEC Chair Emilio Aquino said they were hoping to come up with the final rules before his term ends on June 6.
