Philippine Plans To Legalize And Regulate Cryptocurrencies

The Securities and Exchange Commission (SEC) of the Philipines has mentioned their intentions to make the use of digital currencies legal by categorizing them as securities. They resolved to do this following the financial regulator’s insurance which was to regulate cryptocurrencies such as Bitcoin much earlier this year, 2017.

The Commissioner for the Securities and Exchange Commission (SEC), Emilio Aquino said in a press conference in November 2017 that the bureau intends considering virtual currencies as securities to regulate them under the Philipines administrative code.

“The direction is for us to consider this so-called virtual currencies offerings as possible securities in which case we will apply the Securities Regulation Code.  The heightened frenzy and increasing popularity surrounding initial coin offerings have pushed authorities to lay down new rules to protect consumers.”

Emilio Aquino also mentioned that the agency had established this law based on the fact that Malaysia, United States, Hong Kong and Thailand had already implemented it.

Other Steps the Philipines Are Taking Towards Adopting Cryptocurrencies

The Commissioner in further discussions with the press mentioned that SEC is discussing approving and licensing cryptocurrency exchanges in the country which operations would be supervised the central bank of the Philipines. He continued by saying the central bank had already registered and approved up to six companies that will start operating as digital exchanges. The exchanges though are to process payments coming in from overseas Filipino workers.

The Philippine Central Bank Governor, Nestor Espenilla Jr. has said the Central Bank is employing an open-minded approach is attending to issues regarding financial technologies which includes cryptocurrencies.

Melchor Plabasan, who is the deputy director of the central bank mentioned that Bitcoin and other virtual currencies are investments and monetary instruments which are viable and has manageable risks.

“If you want something that is fast, near real-time and convenient, then there’s the benefit of using virtual currencies like Bitcoin.”

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