Bitcoin Awarded Status of Security in Philippines
Regulating Bitcoin has been a difficult process, but the Philippines has decided to award security status to the leading coin.
The Philippines has found the legal framework to control and oversee cryptocurrencies. Bitcoin and other digital assets may be considered securities and be regulated under the existing security laws.
“The direction is for us to consider this so-called virtual currencies offerings as possible securities in which case we will apply the Securities Regulation Code,” announced Emilio Aquino of the Philippines Securities and Exchange Commission (SEC).
The securities regulator has been looking at the issue of digital assets and has consulted the Central Bank for the right approach. The Philippines is quite open to cryptocurrencies and Bitcoin ATM are widely available, and the country has shown readiness to rival Japan as a crypto-friendly location in the Asia Pacific region.
“This initial coin offering — depending on, as said, the facts and circumstances in which the offering is made especially in raising capital — may be considered as securities, in which case they cannot just be offered without registering with SEC,” announced Aquino.
Until now, ICOs often resorted to a statement that the tokens are not securities - but in the future, this may change and the projects may have added responsibility. ICOs are becoming more regulated as it becomes clear that this type of fundraising is open to scams.
The Philippines regulator has taken direction from the US SEC, as well as similar regulation in Thailand, Malaysia and Hong Kong. The approach is different from the hostile ban in countries such as Morocco, but still leaves room for ensuring ICOs offer better quality.
The cryptocurrency ecosystem faces not only high-level regulation, but also local problems using the services of the banking system, as some exchange companies have reported.
Cryptocurrency exchanges in the Philippines have stepped up their regulation, including AML procedures. The central bank has been supportive of exchanges:
“It’s very simple, what they are allowed to do is to exchange a cryptocurrency or Bitcoin into peso equivalent,” said central bank governor Nestor Espenilla, Jr. “It’s just moving from normal money to cryptocurrency.”
Regional cryptocurrency exchanges are a tool for countries with tighter capital controls, such as China, to move funds overseas. The latest news from the Philippines reveals the trend for cryptocurrencies to slowly enter mainstream in the Asia Pacific region, and in the future years regulation may increase trust in the system.