Although facing a wave of market failure in 2022, the Financial Regulator of the Philippines has decided not to take any hasty steps regarding the development of a legal framework for the crypto industry. The original plan was to publish this framework by the end of 2022. Nevertheless, the guidelines are currently being worked on and the results may be announced this year.
Earlier deadlines have been moved
Emilio Aquino, the chairman of the Philippine Securities and Exchange Commission (SEC), in an interview with a local media channel revealed that previous deadlines for introducing the crypto framework in the country have been pushed back. The regulator originally planned to implement guidelines for the industry in 2022, but has delayed the initiative to study the causes behind the collapse of the FTX exchange and ensure investor protection. According to Aquino, the framework could be released by the end of 2023. He says the following about this:
We haven’t closed the door. We really need to make sure people don’t burn themselves.
Increasing pressure on crypto industry in Philippines
In early 2023, the SEC joined forces with the University of the Philippines Law Center (UPLC) to collaborate on digital asset guidelines. In January 2023, the regulator passed the Implementing Rules and Regulations of Republic Act No. 11765 submitted for public consultation, which was signed into law in 2022. However, the law itself does not contain any reference to “crypto” or “blockchain”.
There is increasing pressure on the crypto industry in the Philippines. The country’s central bank has urged citizens not to transact with unregistered or foreign crypto exchanges, and the same recommendations have been made by the SEC. In May 2023, the SEC classified Gemini Derivatives as an unregistered security under state law.
Despite this, the country remains an attractive destination for cryptocurrency. It is considered one of the fastest growing economies in the world, with over 11.6 million Filipinos owning digital assets, ranking it 10th globally in crypto adoption.