Cryptocurrencies is a form of digital money created and maintained by its users. The popularity of the crypto is spreading wide across the world. Crypto players across the world have made the government of few nations realise the changing trend and the developing economy of the new digital currency and its impact. However, there are many countries on the list that have already banned the idea of trading in cryptocurrency, in the recent news, the Philippines, would use cryptocurrencies exchange soon to operate as regulated trading platforms.
The head of the Philippines’ Securities and Exchange Commission (SEC) is looking forward to laying down the rules for domestic cryptocurrency exchanges soon before finalizing regulations later this year. Authorities proactively seek to both protect investors and enable an inclusive ecosystem for cryptocurrencies to grow in the country.
Ephyro Luis B.Amatong, the SEC commissioner, stated:
“We will put out a draft rule for the virtual currency exchanges, hopefully within the first half of September.”
The officials shared with the reporters that the authority is in talks with the country’s central bank,” Bangko Sentral ng Pilipinas (BSP) for joint oversight over the domestic crypto exchange industry.
According to SEC commissioner “We already discussed the matter with the BSP since the BSP is also interested and we are also interested.” He further added, “The discussion involves joint cooperative oversight over VCEs engaged in trading.”
In February 2017, the Philippines had implemented formal guidelines for cryptocurrency exchanges. At the time, the BSP outlined mandatory operating guidelines for operators wherein certified exchanges were recognized as remittance and money-transfer firms.
When crypto exchanges are regulated as trading platforms, cryptocurrency traders and investors will be afforded more protection of their assets. Also with the help of cryptocurrencies, a new form of fundraising, the startups and companies will also be able to raise finances through initial coin offerings (ICOs).
The SEC is in the process of finalizing its ICO and crowdfunding rules next week wherein startups looking to conduct ICOs will be required to register as a corporation.
The Philippines’ ‘central bank has taken a favourable, even encouraging stance, of cryptocurrencies like bitcoin similar to the other global counterparts. In October 2016, BSP deputy director Melchor Plabasan heralded the central bank’s guidelines as a “pioneering regulation” for the cryptocurrency sector, among the first in the world.
The central bank official added, “If you want something that is fast, near real-time and convenient then there’s the benefit of using virtual currencies like bitcoin.”