The Philippine SEC Gives Unregistered Platforms Three Months Before Ban
The Philippine Securities and Exchange Commission (SEC) has clarified its previous advisory stating that any unregistered platform will be banned after three months. Speaking at a panel on educating consumers on unregistered exchanges, SEC head Kelvin Lee explained that the three-month period allows all unregistered institutions to seek regulatory approval. Originally, the recommendation was for a one-month transition phase, but it was extended to three months to give platforms more time. The SEC’s goal is to protect investors while also giving platforms an opportunity to comply with regulations.
Regulators Adopt a “Wait and See” Approach
In line with global counterparts, the SEC is focused on implementing fully compliant measures for all virtual asset service providers in the country. The commission has warned other firms, including OctaFx and MiTtrade, about operating without registration. Despite claims by some firms that they don’t target Filipino investors, Commissioner Lee asserts that they do operate online and therefore should comply with regulations. Regarding Binance, the SEC emphasizes that the exchange’s lower costs are due to its lack of full compliance. The commission reminds citizens to use registered platforms and advises users to invest in the 17 platforms currently registered in the country.
More Regulations on the Horizon
The SEC also announced that it will release new regulations in the future concerning digital assets. Instead of a public consultation, a small group of experts will deliberate on the proposed rules and provide feedback. The aim is to ensure investor protection and promote responsible use of virtual asset platforms.
Hot Take: SEC Provides Grace Period for Unregistered Platforms
The Philippine SEC’s decision to grant unregistered platforms three months before implementing a ban demonstrates its commitment to investor protection while allowing platforms time to seek regulatory approval. By extending the transition period from one month to three, the SEC aims to strike a balance between regulation and industry growth. This approach aligns with global trends in regulating virtual asset service providers. As the SEC prepares to release new regulations for digital assets, it emphasizes the importance of using registered platforms and encourages investors to exercise caution.
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