Philippines delays crypto framework publication.
Despite the market failures that occurred in 2022, the financial regulatory body of the Philippines has decided not to rush the creation of a legal framework for the crypto industry, which was initially planned to be published in late 2022. However, work on the guidelines is still ongoing and the results could be made public this year.
According to a report in a local media outlet, the chairman of the Philippines Securities and Exchange Commission (SEC), Emilio Aquino, stated that previous deadlines for introducing the crypto framework in the country have been postponed. The regulatory authority had planned to introduce guidelines for the industry in 2022, but it decided to hold back the initiative to study the reasons behind the collapse of the FTX exchange and ensure the protection of investors.
However, Aquino stated that the framework might still be issued by the end of 2023, saying:
“We haven’t closed the door. We really just have to make sure people don’t get burned.”
In early 2023, the SEC partnered with the University of the Philippines Law Center (UPLC) to work together on guidelines for digital assets. In January 2023, the regulatory body released the Implementing Rules and Regulations of Republic Act No. 11765 for public comment, which was signed into law in 2022. However, the act itself doesn’t contain any references to “crypto” or “blockchain.”
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There has been growing pressure on the crypto industry in the Philippines. The country’s central bank has been urging citizens not to engage in any operations with unregistered or foreign crypto exchanges, and the SEC has made similar recommendations. In May 2023, the SEC called Gemini Derivatives an unregistered security product under national law.
Despite this pressure, the Philippines remains an attractive destination for crypto, as it is considered one of the fastest-growing economies in the world, with over 11.6 million Filipinos owning digital assets, putting it 10th worldwide in terms of crypto adoption.
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