The financial regulator in the Philippines has decided not to rush the implementation of a legal framework for the cryptocurrency industry, which was originally planned for late 2022. The chairman of the Philippines Securities and Exchange Commission (SEC), Emilio Aquino, stated that the framework is still under development and might be issued by the end of 2023.
The decision to delay the framework was made to thoroughly study the reasons behind the collapse of the FTX exchange and ensure the protection of investors. Aquino emphasized the importance of preventing financial losses and stated that the regulator needs to make sure people are not harmed.
To facilitate the development of the framework, the SEC partnered with the University of the Philippines Law Center (UPLC) to work together on guidelines for digital assets. However, it is worth noting that the existing legislation, Republic Act No. 11765, does not explicitly mention cryptocurrencies or blockchain.
The Philippines has been putting pressure on the crypto industry, with the central bank and the SEC urging citizens to avoid engaging with unregistered or foreign crypto exchanges. In May 2023, the SEC classified Gemini Derivatives as an unregistered security product under national law.
Despite the regulatory challenges, the Philippines remains an attractive destination for crypto enthusiasts. The country's growing economy and high crypto adoption rate, with over 11.6 million Filipinos owning digital assets, make it a significant player in the global crypto market.
