tl;dr
The Philippine Securities and Exchange Commission (SEC) has issued draft guidelines for Crypto-Assets Service Providers (CASPs) to regulate the digital asset industry. Key proposals include a mandatory minimum paid-up capital of PHP100 million ($1.75 million) for CASPs, with potential exemptions gra...
The Philippine Securities and Exchange Commission (SEC) has proposed draft guidelines for Crypto-Assets Service Providers (CASPs) aimed at regulating the country’s expanding digital asset industry. A key feature is the mandatory minimum paid-up capital requirement of PHP100 million (approximately $1.75 million), although exemptions may be granted based on public interest after formal application.
Applicants must be duly registered corporations with a primary corporate purpose related to digital asset services. The registration process demands comprehensive documentation, including corporate governance, risk management plans, technical disclosures of software and infrastructures, financial strategies, and proof of compliance readiness.
The SEC retains discretionary power to grant exemptions from registration if it aligns with the public interest and investor protection, allowing flexibility for innovative or smaller players. However, such exemptions require formal application and are evaluated case-by-case.
The draft guidelines emphasize coordination with other regulatory bodies, notably the Bangko Sentral ng Pilipinas (BSP), ensuring a multi-layered oversight framework over digital asset activities in the Philippines.
This regulatory framework intends to consolidate the digital asset industry by filtering out undercapitalized firms while fostering a stable and investor-protected market environment. The public consultation period on these draft rules ends on April 26, after which finalization will take place.
Once adopted, the rules will take effect 30 days following publication and are expected to significantly influence how digital asset service providers operate and how investors engage within the Philippine market, promoting long-term viability and market integrity.