The Philippines is preparing to tame the Wild West of cryptocurrency with a regulatory framework set to be unveiled in the latter half of 2024. The Securities and Exchange Commission (SEC) is taking a two-pronged approach: issuing clear guidelines and cracking down on illegal activity.

The upcoming framework prioritizes investor protection, a move prompted by the SEC's recent tussle with Binance. Last month, the SEC flexed its muscle, demanding the removal of Binance-linked apps from app stores in the Philippines. This action highlights the regulator's stance on unregistered platforms operating within the country's borders.

Chairman Emilio Aquino of the SEC reiterated that selling unregistered securities and acting as an unlicensed broker are clear violations of Philippine law. The Binance takedown serves as a warning shot to other platforms operating in the shadows.

However, the SEC acknowledges the challenge posed by virtual private networks (VPNs) that allow users to access unregistered platforms. While a complete shutout might be unrealistic, Aquino emphasizes that the onus lies with investors: "They still can [use VPNs]. But nobody gets to blame us."

The Philippines is also taking learnings from the FTX debacle of November 2022, where American investors suffered losses. This incident underscores the need for clear regulations to safeguard Filipinos venturing into the cryptocurrency space.

The Philippines' move towards a regulated crypto market reflects a global trend. As the crypto industry matures, governments are increasingly stepping in to establish frameworks that protect investors and foster innovation. With its upcoming guidelines, the Philippines aims to strike a balance between encouraging responsible crypto adoption and safeguarding its citizens from financial risks.