Philippines SEC is set to roll out new rules regarding crypto service providers in the nation. According to local media reports, a new set of regulations pertaining to crypto-asset service providers (CASP) has been proposed by the Philippine Securities and Exchange Commission (SEC).
The measures seek to mandate that anyone offering crypto-asset services obtain the required license in accordance with CASP regulations. These regulations come against the backdrop of Philippines seeing a surge in crypto adoption in the nation.
SEC’s New Rules In Philippines
As per the new rules, a stock corporation registered with the SEC, at least four employees based in the Philippines, minimum capital requirements, and a completed authorization application submitted to the SEC are all prerequisites for the CASP registration.
The SEC claims that it will be able to “order the removal of a crypto asset in a crypto asset exchange in the interest of investor protection” under the new guidelines.
Crypto-assets, which are digital representations of value that rely on distributed ledger technology, are defined by the CASP Rules, which also govern offering, trading, and custody.
In the Philippines, all suppliers of crypto-asset services are required to register with the SEC and acquire a license after fulfilling strict standards, such as adhering to the FCPA and minimum capital requirements.
Philippines Emerges Amongst Top Rank of Crypto Adoption
The new guidelines come as crypto usage has seen an unprecedented rise in Philippines. A study conducted by blockchain company Consensys found that Filipinos are the world’s largest cryptocurrency owners and are eager to invest more in digital assets, which have emerged as alternative financial options.
Data analytics firm YouGov also found that 52% of Filipinos purchased cryptocurrencies like Bitcoin and Ethereum in its annual global opinion survey. In terms of cryptocurrency adoption, this placed the Philippines second only to South Africa, where 65 percent of respondents possess digital assets.
Philippines Crypto Market: What To Expect?
The cryptocurrency market in the Philippines is currently expected to grow significantly. The estimated revenue for 2024 at present stands at ₱US$658.1 million.
If the growth continues, by 2025, this is expected to generate ₱US$641.5 million in total sales, with a compound annual growth rate (CAGR 2024-2025) of 2.52%.
The average revenue per user is projected to reach ₱US$62.7 in 2024.Additionally, by 2025, there will be 10.55 million users in the Philippines’ cryptocurrency sector.
In spite of legislative obstacles, cryptocurrency is becoming more and more popular in the Philippines, where more local companies are using digital currencies as payment.