THE Securities and Exchange Commission (SEC) will be tying up with the University of the Philippines Law Center (UPLC) to improve policy formulation and to better address the regulation of financial technology (fintech).
“At present, we at the SEC have been making use of laws and regulations tailored for traditional securities. Although these principles were laid down in the 1930s, they are considerably effective against cryptocurrency scams that are just run-off-the-mill Ponzi schemes,” SEC Chairperson Emilio B. Aquino said in a statement.
The SEC is targeting to issue rules on cryptocurrencies and blockchain technology for the issuance of digital assets and the regulation of digital asset exchanges, said Mr. Aquino.
In the press release, the commission said it signed a memorandum of understanding with UPLC which will conduct joint research projects, capacity building and policy analysis, and resource sharing on fintech.
“Under the partnership, the UPLC will provide aid in the creation of a legal and regulatory framework to initially address issues surrounding cryptocurrencies, before focusing on other fintech products and their corresponding regulation,” the SEC said.
Meanwhile, the SEC will provide resources to support the activities conducted by UPLC regarding cryptocurrencies and fintech. The partnership will also make UPLC as an official partner of the regulator in its initiatives.
“With this, the SEC and UPLC aim to further understand the evolving regulatory landscape surrounding fintech, for the formulation of new policies that may be applied in the Philippines,” the SEC said.
In 2021, the commission established the PhiliFintech Innovation Office to better regulate the use of fintech. At present, it is drafting rules on digital asset exchanges to ensure that it is meeting the global standards on protection, market integrity and transparency. — Justine Irish D. Tabile