Amidst the shimmering waters of the Pacific and the lush greenery of the archipelago, a sophisticated dance of regulation and freedom unfolds in the Philippines, one of Southeast Asia’s rapidly accelerating economies.
After the global market failures in 2022, the country’s financial watchdog, the Philippines Securities and Exchange Commission (SEC), has opted for patience and precision over haste in the journey toward crypto regulation.
The chairman of the Philippines SEC, Emilio Aquino, shed light on the story behind the delay. The regulatory body had initially planned to publish the crypto legal framework in 2022, a deadline that was later revised. This decision came after the catastrophic FTX exchange collapse, which rippled shockwaves through the global crypto community.
According to Aquino, “We haven’t closed the door. We have to make sure people don’t get burned.” His statement signifies a firm commitment to investors’ protection, placing it at the heart of the Philippines’ crypto regulation process. The framework, still a work in progress, might see the light of day by the end of 2023.
Earlier this year, the SEC forged a unique partnership with the University of the Philippines Law Center (UPLC), underscoring the role of academic insights in shaping the digital assets guidelines.
In January 2023, the Implementing Rules and Regulations of Republic Act No. 11765 were presented for public discussion, even though the act – signed into law in 2022 – doesn’t explicitly mention “crypto” or “blockchain.”
Despite the mounting pressure on the crypto industry in the Philippines and stern warnings from the country’s central bank and the SEC about unregistered or foreign crypto exchanges, the nation continues to hold allure for digital currency enthusiasts. With over 11.6 million Filipinos as proud owners of digital assets, the Philippines boasts the 10th highest rate of crypto adoption worldwide.
From Manila’s vibrant streets to Palawan’s serene coastal stretches, the Philippines is more than an exotic getaway. It’s a nation delicately balancing the scales of innovation and regulation, paving the way for a future where cryptocurrency thrives in a regulated environment. The world is watching as the Philippines maneuvers these complex currents, ensuring the safety of its citizens while embracing the promise of a digital economy.
