The Philippine Securities and Exchange Commission (SEC) has proposed new rules to regulate the country’s booming crypto market. The rules aim to establish clear guidelines for service providers involved in activities like trading, custody, and public offerings of crypto-assets. The SEC defines crypto-assets as digital representations of value using distributed ledger technology. The goal is to mitigate risks like fraud and market manipulation while promoting innovation.
Service providers must register with the SEC and comply with strict standards, including capital requirements and submitting detailed disclosure documents. The proposal emphasizes cybersecurity and anti-money laundering measures, requiring alignment with the National Cybersecurity Plan and regular audits. Practices to prevent insider trading and market manipulation will be closely monitored. The rules aim to protect investors and support innovation in the country’s growing crypto industry.
