The Philippines has taken their first steps to becoming more crypto-friendly. One of the country's main financial regulators has just announced that they intend to classify Bitcoin, and other cryptocurrencies, as securities. They will be subject to the agency's Securities Regulation Code. The decision was announced by the agency's commissioner, Emilio Aquino, earlier this week. This move has been anticipated for quite some time and followed extensive monitoring and consideration from both the regulatory body as well as the Philippine Central Bank.
Following in Japan’s footsteps, the Philippines is likely to play an important role in the crypto revolution sweeping the east.
Several Philippine firms have already embraced blockchain-based technology. Calata Corp., the popular agricultural firm, has launched their own Initial Coin Offering (ICO) following their loss of formal stock exchange products. The firm has launched their very own ERC20 compatible token, Calcoins, in the hopes of joining the lucrative ICO industry.
ICOs have been growing in popularity in the last year. Since the start of the year, ICOs have raked in a total of $4 billion. It is clear that the Philippine regulating body has taken note of the growing trend. However, according to commissioner Aquino, ICOs will also be categorized as securities, providing they have registered with the Philippine SEC (PhSEC).
The crypto community has shown some ambiguity in regards to the PhSEC’s announcement. While increased regulation is better than banning ICOs, the strict regulation does have a tendency to interfere with innovation. However, it is clear that PhSEC did not make their decision lightly. According to Commissioner Aquino, the PhSEC has been monitoring all trends regarding ICOs, as well as popular cryptocurrencies, using social media. In addition, the agency considered the different regulations put forth by countries such as Japan, Malaysia, the US, Thailand, and Hong Kong.
The decision was reached by the PhSEC in collaboration with the Philippian Central Bank, BSP. According to Commissioner Aquino, there is already six cryptocurrency firms registered and acknowledged by the BSP. However, the approved firms are mostly limited to services tailored to financial business solutions, as well as international payments, in order to address high costs associated with current solutions. In addition, Espenilla confirmed that the BSP has already registered two cryptocurrency trading platforms, and is in the process of evaluating more applications.
The Governor of the BSP, Nestor Espenilla, Jr., confirmed that the BSP intends to remain open-minded and receptive to all financial technology innovations. Espenilla continued to state that the bank considers itself a vital role player in creating a conducive environment for fintech innovation.
In January 2017, the BSP developed a set of regulatory policies that cryptocurrency exchanges were expected to comply with. The policies were mainly created to address concerns of money laundering and other nefarious activities associated with cryptocurrencies. However, another main concern of the BSP is the country's liquidity. Countries with strict capital control policies have experienced a surge in Bitcoin payments in order to avoid strict policies regarding international transfers. The BSP was eager to discourage this.
According to Governor Espenilla, Philippian users would be allowed to exchange their cryptocurrency holdings to peso.
Earlier this year, Espenilla also confirmed that the two cryptocurrency trading platforms that are registered with the BSP are Philippian-based, that would provide its users with international solutions.
Following in Japan’s footsteps, the Philippines is likely to play an important role in the crypto revolution sweeping the east.
Several Philippine firms have already embraced blockchain-based technology. Calata Corp., the popular agricultural firm, has launched their own Initial Coin Offering (ICO) following their loss of formal stock exchange products. The firm has launched their very own ERC20 compatible token, Calcoins, in the hopes of joining the lucrative ICO industry.
ICOs have been growing in popularity in the last year. Since the start of the year, ICOs have raked in a total of $4 billion. It is clear that the Philippine regulating body has taken note of the growing trend. However, according to commissioner Aquino, ICOs will also be categorized as securities, providing they have registered with the Philippine SEC (PhSEC).
The crypto community has shown some ambiguity in regards to the PhSEC’s announcement. While increased regulation is better than banning ICOs, the strict regulation does have a tendency to interfere with innovation. However, it is clear that PhSEC did not make their decision lightly. According to Commissioner Aquino, the PhSEC has been monitoring all trends regarding ICOs, as well as popular cryptocurrencies, using social media. In addition, the agency considered the different regulations put forth by countries such as Japan, Malaysia, the US, Thailand, and Hong Kong.
The decision was reached by the PhSEC in collaboration with the Philippian Central Bank, BSP. According to Commissioner Aquino, there is already six cryptocurrency firms registered and acknowledged by the BSP. However, the approved firms are mostly limited to services tailored to financial business solutions, as well as international payments, in order to address high costs associated with current solutions. In addition, Espenilla confirmed that the BSP has already registered two cryptocurrency trading platforms, and is in the process of evaluating more applications.
The Governor of the BSP, Nestor Espenilla, Jr., confirmed that the BSP intends to remain open-minded and receptive to all financial technology innovations. Espenilla continued to state that the bank considers itself a vital role player in creating a conducive environment for fintech innovation.
In January 2017, the BSP developed a set of regulatory policies that cryptocurrency exchanges were expected to comply with. The policies were mainly created to address concerns of money laundering and other nefarious activities associated with cryptocurrencies. However, another main concern of the BSP is the country's liquidity. Countries with strict capital control policies have experienced a surge in Bitcoin payments in order to avoid strict policies regarding international transfers. The BSP was eager to discourage this.
According to Governor Espenilla, Philippian users would be allowed to exchange their cryptocurrency holdings to peso.
Earlier this year, Espenilla also confirmed that the two cryptocurrency trading platforms that are registered with the BSP are Philippian-based, that would provide its users with international solutions.