The Philippines Crypto Market Is Changing Under Positive RegulationAugust 13, 2018
Reports show that the Philippines has the fastest growing Cryptocurrency use in the world. In this regard, there is an ever-increasing number of blockchain solutions for everyday problems that are contributing to this positive trend. The reason behind the success is that the solutions are relevant to the society’s needs.
One of the sectors undergoing a revolution is the financial sector. In particular, the growth is driven by a surge in demand by expats to remit money back home. And a need by Filipino recipients to be connected with over 10 million of their friends and relatives abroad. One of the recently unveiled platforms is the PearlPay Blockchain Network.
The Government Is Creating An Enabling Environment For Cryptocurrencies
The Philippines Securities and Exchange Commission is bringing into effect a regulatory framework that aims to regulate Crypto transactions in this emerging economy.
In particular, the government is keen to control the conduct of ICOs that has often been used by scammers to defraud unsuspecting investors in the Philippines and beyond. The policymakers are convinced that tightening the noose will protect investors, encourage the use of blockchains and eventually widen up and diversify the Philippines economy.
One of the regulations will be on the registration of ICOs: In this case, the businesses, individuals, and companies have to register with the SEC and undergo scrutiny. With the government having the proper records, the investors will be able to pursue ICO fraudsters in case of a Ponzi scheme.
Emilio Aquino, the SEC Chair is pointing out that one f the problems that the government is aiming to solve is the case where retail investors set up ICOs and invite investors to contribute without having a platform or fund. He points out that this fact encourages the retailers to vanish with collections once they are successful in their mission.
Aquino has been leading an onslaught on the scams and is certain that the new regulations will set the Philippines as a global hub for blockchain technology and the Cryptocurrencies.
There Is Considerable Support For The SEC Actions
Vast quarters of stakeholders, entrepreneurs, and potential startups are backing the tight government control of the cryptocurrencies and even urging other countries to follow suit. They believe that a good working framework will not only legitimize the blockchain operations in the country but formalize them to be part of the mainstream economy.
One of the stakeholders, Patrick Palacios, the CEO of LoyalCoin and Appsolutely based in the Philippines adds that the proof of burden for the ICOs will be placed at the hands of the issuer, therefore protecting investors the deeming that it is their duty to cross-check legitimate crypto investments. He insinuated that the investment risks would be a thing of the past once the regulations come into enforcement.
Following The Footsteps Of Other Countries
France’s AMF, Britain’s Ministry of Finance, USA’s SEC, India’s RBI and many other countries are on the process of creating policies to govern Cryptocurrencies and the adoption of Blockchain Technology. The role of the Philippines’ SEC will not only bring the Philippines into the spotlight of a safe investment hub locally but harmonize the local environment to the operations of the global leaders.