The Philippines may have to wait longer to have propercryptocurrency regulations after the country's financial regulator postponedthe release of a legal framework for the industry.
According to a local media report, Emilio Aquino, the Chairman of the Philippines’ Securities and ExchangeCommission (SEC), said the postponement of the release of the guidelines wasmeant to give the regulator time to assess how best to protect investors after thecollapse of FTX.
However, Aquino said that the work on the guidelines wasongoing, and the legal framework could still be released in 2023 after theregulator has studied the reasons behind the fall of the Bahamas-based cryptoexchange.
"We were supposed to bring it out late last year,but we don't want people to get burned," Aquino originally commented inFilipino and was translated to English using Google Translate. "Theissuance of digital assets is a form of capital raising, and we have to studythat because, like in FTX, they were transferring billions left, right, andcenter."
FTX was a cryptocurrencyderivatives exchange that collapsed in November last year after a bank run. It was ranked among the industry'stop digital asset trading platforms. Sam Bankman-Fried, the exchange's Founder and former CEO, was later arrestedand extradited from the Bahamas to face criminal charges in the US.
The events around the collapse and the huge amount oflosses it brought to investors, estimated to be in the billions ($), haveforced the Philippines to tighten its rules on digital assets before having alegal framework in place. In May, the Southeast Asian country warned against a cryptoderivatives platform launchedin the country by Gemini.
Gemini, Binance Face Regulatory Pressure in the Philippines
In a regulatory notice, the SEC in the Philippines said thatGemini Trust Company, the parent company behind its namesake exchange, was notregistered with the commission and operated without a necessary license or authority. Gemini launched the derivatives exchange outside the US,and the Philippines was among the countries where the platform went live.
Furthermore, Finance Magnates reported that Binance, currently the largest cryptocurrency trading platform by volume, was planning to acquiretwo licenses, the virtual asset service provider (VASP) and the electronic money issuer (EMI) licenses, in the Philippines.
UK bank taps Integral; StoneX's prime brokerage; read today's news nuggets.
The Philippines may have to wait longer to have propercryptocurrency regulations after the country's financial regulator postponedthe release of a legal framework for the industry.
According to a local media report, Emilio Aquino, the Chairman of the Philippines’ Securities and ExchangeCommission (SEC), said the postponement of the release of the guidelines wasmeant to give the regulator time to assess how best to protect investors after thecollapse of FTX.
However, Aquino said that the work on the guidelines wasongoing, and the legal framework could still be released in 2023 after theregulator has studied the reasons behind the fall of the Bahamas-based cryptoexchange.
"We were supposed to bring it out late last year,but we don't want people to get burned," Aquino originally commented inFilipino and was translated to English using Google Translate. "Theissuance of digital assets is a form of capital raising, and we have to studythat because, like in FTX, they were transferring billions left, right, andcenter."
FTX was a cryptocurrencyderivatives exchange that collapsed in November last year after a bank run. It was ranked among the industry'stop digital asset trading platforms. Sam Bankman-Fried, the exchange's Founder and former CEO, was later arrestedand extradited from the Bahamas to face criminal charges in the US.
The events around the collapse and the huge amount oflosses it brought to investors, estimated to be in the billions ($), haveforced the Philippines to tighten its rules on digital assets before having alegal framework in place. In May, the Southeast Asian country warned against a cryptoderivatives platform launchedin the country by Gemini.
Gemini, Binance Face Regulatory Pressure in the Philippines
In a regulatory notice, the SEC in the Philippines said thatGemini Trust Company, the parent company behind its namesake exchange, was notregistered with the commission and operated without a necessary license or authority. Gemini launched the derivatives exchange outside the US,and the Philippines was among the countries where the platform went live.
Furthermore, Finance Magnates reported that Binance, currently the largest cryptocurrency trading platform by volume, was planning to acquiretwo licenses, the virtual asset service provider (VASP) and the electronic money issuer (EMI) licenses, in the Philippines.
UK bank taps Integral; StoneX's prime brokerage; read today's news nuggets.
FAQs
Cryptocurrency regulations
In the Philippines, cryptocurrency transactions are legal; however, crypto coins are not considered 'legal tender' as they are not issued by the BSP. In 2021, the Central Bank released the Guidelines for VASPs.
Will the Philippines block Binance? ›
The move to block the site follows a warning from November 2023. "The SEC has identified the aforementioned platform and concluded that the public's continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos,” SEC Chairperson Emilio B.
Is OKX legal in Philippines? ›
OKX prioritizes security, employing strict measures to protect users. Based in Seychelles but open to Filipino investors, it complies with all necessary regulations.
Why is it hard to regulate cryptocurrency? ›
By their very nature, cryptocurrencies are freewheeling, not beholden to country borders or specific agencies within a government. However, this nature presents a problem to policymakers who are used to dealing with clear-cut definitions for assets.
Is crypto platform legal in the Philippines? ›
The BSP regulates cryptocurrency exchanges nationally as Virtual Asset Service Providers (VASPs), while the Philippines Securities and Exchange Commission (SEC) laid down guidelines to oversee digital asset offerings (DAO) and digital asset exchanges (DAX) in 2022 but halted this process with the collapse of the ...
Is it legal to mine crypto in Philippines? ›
Bitcoiners and webcast guests Ramon Tayag and Atty. Rafael Padilla explained when it is illegal and when it is not. According to Padilla, there is no issue with mining bitcoin. But entering into cloud mining contracts has an issue, specifically for those who offer this kind of contract without a permit from the SEC.
Is Coinbase allowed in Philippines? ›
The Coinbase cryptocurrency exchange will not be a good choice for traders from Philippines. The company does not hold a license, although the main reason for that is that the financial regulator of the country does not license crypto exchanges in general.
Is Binance regulated in Philippines? ›
The Philippines Securities and Exchange Commission (SEC) has ordered the nation's National Telecommunications Commission to block access to cryptocurrency exchange Binance, for the simple reason that platform doesn't have a licence.
Is Binance licensed in Philippines? ›
The Philippine SEC has clearly stated that Binance does not possess the necessary licenses to operate or offer services within the nation.
Is OKX allowed in the US? ›
Not available to users in the United States: OKX is not available to U.S.-based users for regulatory and compliance reasons. Low liquidity for certain currencies: While it's a top-20 exchange, certain currencies trade with a low liquidity level.
In the case of UnionBank, it is so far the first and only bank in the Philippines to offer virtual exchange services. Other financial institutions with the VASP license include coins.ph, Philippine Digital Asset Exchange, and Maya. The universal bank will gradually roll out the feature in the fourth quarter of 2023.
Can I use OKX exchange in USA? ›
OKX is regulated in the Bahamas and currently does not allow customers from the United States to use its platform due to regulatory issues.
Can government shut down crypto? ›
As Bitcoin is decentralised, the network as such cannot be shut down by one government. However, governments have attempted to ban cryptocurrencies before, or at least to restrict their use in their respective jurisdiction. Governments could still try to jointly ban Bitcoin.
What will happen if crypto is regulated? ›
Legitimacy and Adoption
Legal framework: The SEC's regulations could legitimize cryptocurrency enterprises and attract more traditional investors and institutions, potentially leading to broader adoption.
Who is trying to regulate crypto? ›
The FCA in its policy statement 23/6 sets out certain financial promotion rules for crypto assets and details of the near-final rules for the FCA handbook, which will only affect the activities of firms that FCA itself already regulates.
How much is crypto taxed in the Philippines? ›
Cryptocurrency taxation in the Philippines includes considerations such as capital gains tax (CGT), which can reach up to 15 per cent. Filipino citizens involved in cryptocurrency ownership or trading are required to report their capital gains during their annual tax filings.
What are the rules and regulations of cryptocurrency? ›
Is Cryptocurrency In India Legal or Not? Cryptocurrencies as a payment medium in India are not regulated by any central authority. There are no rules and regulations or any guidelines laid down for settling disputes while dealing with cryptocurrency. So, trading in cryptocurrency is done at investors' risk.
Can you pay with crypto in Philippines? ›
With this payment protocol, customers can pay by scanning a merchant's QR code with any Bitcoin wallet, and Pouch.ph converts the bitcoin to pesos, transferring the funds directly to the merchant's bank or mobile money account.
How do I get a crypto license in the Philippines? ›
To acquire a cryptocurrency license Philippines, applicants must complete a three-stage process:
- First, obtain BSP approval as a Money Service Business (MSB);
- Second, secure a Letter of No Objection from the SEC for the Articles of Incorporation;
- Third, receive a Certificate of Authority to operate as an MSB.
