Key takeaways:
- The Philippines’ financial authority has opted not to hurry the publication of a legal framework on the crypto industry, which was initially scheduled for late 2022
- The regulatory body delayed its endeavor to investigate the causes of the collapse of the FTX exchange and ensure investors’ protection.
The Philippines’ financial authority has opted not to hurry the publication of a legal framework on the crypto industry, which was initially scheduled for late 2022, in spite of the wave of market failures in 2022. The criteria are still being worked on, though, and the outcomes might be revealed this year.
The chairman of the Philippines Securities and Exchange Commission (SEC), Emilio Aquino, was quoted in a local media outlet as saying that earlier deadlines for establishing the country’s crypto framework had been postponed. The regulatory body delayed its endeavor to investigate the causes of the collapse of the FTX exchange and ensure investors’ protection because it intended to publish rules for the sector in 2022. Aquino said that the framework might still be released by the end of 2023.
“We haven’t closed the door. We really just have to make sure people don’t get burned.”
The SEC and the University of the Philippines Law Centre (UPLC) collaborated on standards for digital assets earlier in 2023. The Implementing Rules and Regulations of Republic Act No. 11765, which was passed into law in 2022, were presented by the regulatory body for public comment in January 2023. However, there is not a single mention of “crypto” or “blockchain” in the actual act.
The Philippine cryptocurrency market has been under increasing strain. The SEC and the national bank of the Nation have both issued warnings against conducting any business with unlicensed or overseas cryptocurrency exchanges. The SEC referred to Gemini Derivatives as an unregistered security product under domestic law in May 2023.
The country is still a desirable location for cryptocurrency. With over 11.6 million Filipinos having digital assets, it is one of the economies with the fastest growth rates in the world and ranks 10th globally in terms of the adoption of cryptocurrencies.
The United Arab Emirates (UAE) and Hong Kong central banks will collaborate on creating financial technologies and regulating cryptocurrencies on May 31. Financial market connectivity and financial infrastructure between the two jurisdictions were among the major subjects discussed. Additionally, the banks committed to advancing negotiations with each region’s innovation hubs about joint fintech development projects and “knowledge-sharing efforts.”
