The Philippines is aiming to regulate cryptourrency trading platforms by coming up with rules for domestic crypto exchanges. The new guidelines will aim to protect investors while also creating ways for virtual currencies to grow countrywide. According to the new guidelines, cryptocurrency exchanges will be soon operating as regulated platforms.
The Philippines Securities and Exchange Commission (SEC) commissioner, Ephyro Luis B. Amatong, says that,
“We will put out a draft rule for the virtual currency exchanges, hopefully within the first half of September.”
Amatong also shares that the main authority is talking with the country’s central bank in the hopes of forming a commonplace regulatory firm for the nation’s crypto industry.
Amatong also said,
“We already discussed the matter with the BSP since the BSP is also interested and we are also interested”
Regulating the industry will provide traders much more protection while investing. In addition, crypto startups will have the ability to raise funds in a regulated manner with Initial Coin Offerings (ICOs). Furthermore, new regulations will require international ICOs to have branches within the country.
Regulating the Crypto Industry
Unlike other central banks against digital currencies, the Philippines Central Bank is taking a much more favorable approach. The bank has even been encouraging virtual currency trading with Bitcoin (BTC). In 2016, BSP deputy director, Melchor Plabasan, said the bank was working on an approach that would only guide the industry to improve itself.
Regulating the crypto sector is a current discussion worldwide. Nearly all central banks are working to either regulate the crypto sector or completely ban it. The only country currently operating a regulated crypto sector is Japan. The country made virtual currencies legal and created regulation for the exchanges operating throughout their country. Exchanges in Japan have even started self-regulating in an effort to follow tough regulatory measures countrywide.
Regulating the cryptocurrency industry may have a negative impact short term and, therefore, is considered a long-term project. Regulation may lead to reducing money laundering and illegal uses of virtual currencies like those occuring in the dark web. With regulation, some experts are predicting a potential Bitcoin price of $50,000 before the completion of 2019.