The Philippine Securities and Exchange Commission has shared the draft regulatory framework for cryptocurrencies. Stakeholders are invited to provide comments on the draft no later than January 18, 2025.

According to what has been circulated recently documentThe published draft regulation is titled “SEC Rules Concerning Crypto Asset Service Providers (CASP Rules).” The framework covers a range of cryptocurrency trading activities, including the requirements needed to obtain... second-Licensing issued, market activities and public offerings.

Supreme Education Council Filipino He stressed the importance of establishing a regulatory framework for cryptocurrencies, as the country has witnessed rapid growth in this sector.

“The continued growth and development of new crypto asset markets, services and business models depends on clear, proportionate and robust regulatory frameworks, which can ensure that markets are fair, efficient and transparent.”

As a result, the SEC proposed through the draft that cryptocurrency service providers must register with the SEC and obtain a CASP license if they wish to operate in the Philippines. We also encourage stakeholders to provide their input regarding the regulatory framework until January 18, 2025.

To be eligible for a CASP licence, companies must adhere to the rules outlined in the framework, have at least four employees residing in the country, must have a joint stock company registered with the Securities and Exchange Commission, and must meet minimum capital requirements. specified. By the SEC.

If a registered company is believed to have violated the rules outlined in the Framework, the SEC will conduct an investigation into the cryptocurrency company's business dealings and day-to-day operations to uncover any violations. Penalties include fines, a cease and desist order, and revocation of your CASP license.

In order to mitigate risks Money laundering and cybersecurity threats, CASP licensees are expected to align their systems in accordance with the National Cybersecurity Plan. They must also conduct regular audits and reviews to ensure their systems are protected against emerging threats.

On the other hand, companies plan to conduct... Public offers To sell or distribute cryptoassets, you must first file a disclosure document with the Securities and Exchange Commission. The document must also be published on the company's website and all social media platforms at least 30 days before the actual offer takes place.

The disclosure document must include information about the provider of the crypto-assets, the source of the crypto-assets, the underlying technology used, the rights and obligations associated with the crypto-assets, potential risks, and warnings about potential loss of value.

In addition, the document also contains a special section outlining the prohibition of market manipulation, insider trading and illegal disclosure of information.

In May 2024, Philippine Securities and Exchange Commission Chairman Emilio P. Aquino Announce The government agency will introduce a set of guidelines to regulate cryptocurrency trading activity by the second half of 2024. The announcement came a few months after the Philippine Securities and Exchange Commission. Forbidden Binance from operating without a license.