Source: Crowd Fundinsider; Translated by Tao Zhu, Jinse Finance
The Philippines Securities and Exchange Commission (SEC) has issued comprehensive rules on cryptocurrency asset management, covering disclosure, public offerings, trading, and marketing activities.
These regulations aim to strengthen investor protection and promote transparency in the thriving digital asset market.
Under the new guidelines, cryptocurrency issuers must submit disclosure documents to the SEC at least 30 days before any marketing activities or public sales.
The document must detail the issuer of the cryptocurrency, its key features, risks, and underlying technology, as well as clear disclaimers highlighting potential risks, including loss of value and limited transferability.
Cryptocurrencies classified as securities require a registered statement approved by the SEC to be publicly offered. If an Initial Coin Offering (ICO) is deemed to involve the sale of securities, it falls under the definition of the Securities Regulation Code (SRC).
Entities issuing or trading cryptocurrencies must comply with anti-money laundering (AML) laws and SEC reporting requirements. The SEC emphasizes that non-compliance may result in fines, suspensions, or license revocations.
The rules also prohibit market manipulation, insider trading, and the dissemination of false or misleading information. Marketing activities must accurately disclose risks and avoid misleading statements. Unauthorized individuals or entities are prohibited from issuing or promoting cryptocurrencies.
Cryptocurrency Asset Service Providers (CASPs) must adopt a cybersecurity framework, maintain effective systems to detect and prevent market abuse, and ensure compliance with AML regulations. The SEC retains the power to audit, investigate, and penalize non-compliant entities.
Penalties for violations include fines ranging from 50,000 to 10 million Philippine pesos per infraction, and individuals can face up to five years in prison. Companies may face license revocation, and directors and executives will be held personally liable for violations.
The new regulations will take effect 30 days after being published in two widely circulated newspapers, underscoring the Philippine government's commitment to establishing a safe and transparent cryptocurrency ecosystem.
The Commission has called for comments from all stakeholders on the draft "SEC Cryptocurrency Asset Service Providers Rules" proposal.
