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The Securities and Exchange Commission of the Philippines is consulting the public on a draft application rules targeting cryptography under a general consumer protection act.
The regulator published its plans for implementing rules and regulations set out in the Financial Products and Services Consumer Protection Act approved by former President Rodrigo R. Duterte last May. While the act does not name individual financial services or products, the SEC's draft of rules for implementation, published Jan. 20, incorporates cryptography into its securities classification.
"Securities shall include 'tokenized securities products' or those which grew with the abstraction of key characteristics from cryptocurrency’s underlying distributed LEDGER technology to apply in the traditional financial sector," the draft said.
Crypto adoption in the Philippines skyrocketed in 2022 on the tail end of the bull market that closed with multiple high-profile bankruptcies, and regulators in the country have been moving to clamp down on the industry.
Sec's proposed legislation is open for public comment until February. 7.
"It is the policy of the State to ensure that appropriate mechanisms are in place to protect the interest of consumers of financial products and services under the conditions of transparency, fair and sound market conduct, and fair, reasonable, and effective handling of financial consumer disputes, which are aligned with global best practices," the draft says.
The Securities and Registration Department (msrd) of the country will be responsible for overseeing entities providing securities or related services.
Sec's proposed legislation is open for public comment until February. 7.
Read more: Southeast Asia Leads the World in Crypto Adoption, Propelled by Play-to-Earn Gaming: Chainalysis
