Draft Proposal for SEC Rules on Crypto-Assets Service Providers
The Securities and Exchange Commission (SEC) is seeking feedback on its draft “Rules on Crypto-Assets Service Providers.” Comments can be submitted to Atty. Paolo Montano M. Ong at the SEC Headquarters or via email at fintech@sec.gov.ph until January 18, 2025.
The draft rules aim to regulate activities related to crypto-assets, which are digitally secured representations of value that rely on distributed ledger technology. These assets can be transferred, stored, or traded electronically and are classified as financial products under the Financial Consumer Product Protection Act.
Entities involved in crypto-assets, such as custodians, exchanges, and intermediaries, will need to register with the SEC. They will also be required to follow guidelines for marketing, preventing market manipulation, and insider trading. The SEC has enforcement powers to ensure compliance and may suspend or revoke licenses for non-compliance.
The rules also cover initial coin offerings (ICOs), which involve offering digital tokens in exchange for consideration. Market manipulation, insider trading, and unlawful disclosure of information are prohibited to maintain market integrity.
Overall, the SEC’s draft rules aim to provide a regulatory framework for the growing crypto-assets industry in the Philippines. Stakeholders are encouraged to provide feedback to help shape the final rules and promote a transparent and fair market for all participants.
