The Philippine Securities and Exchange Commission (SEC) is gearing up to introduce comprehensive regulatory measures for cryptocurrencies in the latter half of 2024. Chairperson Emilio B. Aquino revealed that these forthcoming guidelines are designed to establish a robust framework for overseeing cryptocurrency trading activities within the country while prioritizing investor protection.

Aquino unveiled this strategic initiative while shedding light on the recent crackdown orchestrated by the commission against unlicensed cryptocurrency service providers operating within Philippine borders. Notably, the SEC recently imposed a ban on Binance for its unauthorized offering of securities, prompting regulatory action.

In response to the crackdown on Binance, the SEC has taken proactive steps, including urging tech giants Apple and Google to remove the exchange's applications from their respective app stores. Aquino emphasized the urgency of these actions, underscoring the commission's commitment to its regulatory responsibilities. He remarked, "I hope it's fast. We already experienced this with lending apps before. The response is quick. It's up to them (Google and Apple)."

Acknowledging the prevalence of traders circumventing restrictions through virtual private networks (VPNs) to access Binance's platform despite the ban, Aquino maintained that the commission cannot be held accountable for such actions.

The use of VPNs to bypass regulatory constraints is a widespread phenomenon in the cryptocurrency sector, evidenced by similar practices observed following India's ban on multiple foreign cryptocurrency exchanges.

Aquino reiterated the SEC's stance that all cryptocurrency trading platforms operating in the Philippines must procure the requisite licenses in accordance with Republic Act No. 8799, also known as the Securities Regulation Code (SRC). Emphasizing that recent regulatory actions are not aimed at singling out specific platforms, Aquino clarified that the overarching objective is to ensure compliance and hold platforms accountable for fulfilling their obligations.

Drawing attention to the collapse of FTX and the subsequent financial losses incurred by investors, Aquino highlighted the imperative for regulatory oversight in the cryptocurrency sector. He emphasized that unlike jurisdictions such as the United States, the Philippines lacks extraterritorial jurisdiction, necessitating the formulation of domestic regulations to safeguard investors and uphold market integrity.

In light of these considerations, the Philippines is poised to implement comprehensive regulatory measures to govern the burgeoning cryptocurrency industry, with a focus on fostering investor confidence and mitigating systemic risks.