New rules aim to regulate crypto service providers, focusing on transparency, public offerings, and market integrity.
Regulating the Growing Crypto Sector
The Philippine Securities and Exchange Commission (SEC) has introduced a draft framework for regulating crypto service providers. Dubbed the “SEC Rules on Crypto-Assets Service Providers (CASP Rules),” the proposal seeks public feedback by January 18, 2025.
Comprehensive Scope of New Rules
The CASP Rules define crypto-assets as digital representations of value using distributed ledger technology. The framework will regulate activities like trading, custody, and public offerings, requiring service providers to register with the SEC and meet stringent compliance standards.
Transparency and Consumer Protection
Entities offering crypto-assets to the public must submit detailed disclosure documents to the SEC at least 30 days before launching. These documents must outline the offeror’s profile, technology, risks, and potential loss of value to ensure transparency for investors.
Focus on Security and Integrity
The draft emphasizes strong cybersecurity and anti-money laundering measures. Service providers must adhere to the National Cybersecurity Plan and implement anti-fraud systems, including insider trading and market manipulation safeguards.
Feedback Invited from Stakeholders
The SEC has invited stakeholders to provide their input on the proposed CASP Rules. This collaborative approach aims to balance innovation with robust investor protection.
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