Regulatory authorities in the Philippines are framing the new regulatory structure to legalize the use of Bitcoin and Other digital currency in the country. According to the country’s Securities and Exchange Commission (SEC) official, the Initial Coin Offerings (ICOs) could be classified as “security” and the focus is to ensure consumer protection.
The move is in line with regulations passed by the U.S. SEC, and other regulators in Malaysia, Hong Kong and Thailand. Recognizing the growing popularity of the blockchain funding use case.
The Bangko Sentral ng Pilipinas (BSP), the country’s central bank is also considering the licensing framework of cryptocurrency exchanges based in the Philippines.
Some cryptocurrency exchanges have already been “registered and endorsed” by the Central Bank (BSP) but they are restricted to money services businesses working in remittances. The new framework will allow other cryptocurrency exchanges to function as “money changers”
Phillippines’ Central Bank BSP has the “open mind” approach towards fintech and cryptocurrency developments and they are ensuring that their policies provide opportunities for innovation.