SEC clarifies new rules for crypto service providers

The Securities and Exchange Commission (SEC) clarified that its new rules for cryptocurrency service providers do not ban trading but require platforms to register.

These regulations, which took effect on July 5, aim to protect investors and maintain market integrity by ensuring all entities offering crypto asset services in the Philippines are properly registered.

The SEC emphasized the importance of responsible regulation to safeguard against risks such as fraud, loss of funds, and money laundering.

Platforms must meet certain requirements like having a minimum paid-up capital of P100 million and maintaining a physical office during regular business hours.

Violators face penalties including imprisonment for one to five years or fines ranging from P50,000 to P10 million.

Recently, the SEC warned against ten unlicensed crypto platforms operating in the Philippines, urging Filipino investors to exercise caution.