The Philippines Securities and Exchange Commission is seeking to bring cryptocurrencies under its scope and tighten its authority over the local cryptocurrency industry under new draft rules.
According to a report in local media outlet, the Manila Bulletin, the securities regulator put forward for public comment draft rules relating to financial products and services which also cover cryptocurrencies and digital financial products.
The SEC said in a statement the draft rules will operationalize a newly signed law and give it rule-making, surveillance, inspection, market monitoring, and more enforcement powers.
The guidelines expand the definition of a security to include tokenized securities products or other financial products using blockchain or distributed ledger technology.
Other financial products, including digital financial products and services relating to those accessed and delivered through digital channels along with their providers, will also come under the SEC’s remit.
The ability to enforce securities regulations is similarly expanded. The SEC would be able to restrict service providers from collecting excessive interest, fees, or charges.
The regulator would also have the power to disqualify or suspend directors, executives or any other employee found to be in violation of the laws. It could also suspend a firm’s entire operation.
