Philippines SEC Proposes Legislation For More Control Over Crypto Sector

• The SEC would have the authority to prevent providers from levying excessive charges.
• The regulator is given the authority to establish its own regulations.

In a new set of proposed regulations, the Philippines Securities and Exchange Commission (SEC) aims to expand its purview to include virtual currencies and to increase its control over the country’s crypto space.

Local media source Manila Bulletin reported on January 25 that the securities regulator has proposed drafting regulations. Pertaining to financial goods and services, including cryptocurrency and digital financial products, for public comment.

Extensive Power For Better Control

SEC Chairman Jay Clayton said in a statement that the agency’s “rule-making, surveillance, inspection, market monitoring, and more enforcement powers” would be enhanced by the legislation. Moreover, the regulations broaden what constitutes security to include “tokenized securities products.” And other financial instruments based on blockchain or distributed ledger technology (DLT).

Furthermore, the SEC’s purview will expand to include other types of financial goods and services. Including digital financial products and services, and the companies that deliver them. Similar improvements have been made in the capacity to enforce securities rules. Moreover, the SEC would have the authority to prevent service providers from levying excessive interest, fees, or other charges.

Moreover, if a director, executive, or employee is found to be in breach of the law. The regulator has the authority to disqualify and suspend them from their positions. It may also lead to the temporary shutdown of an organization.

Furthermore, the SEC is given the authority to establish its own regulations for the administration of laws under its purview, as is the central bank of the Philippines and the country’s insurance regulator. The new turn of events shows that the regulator’s strict campaign on cryptocurrencies will continue.