The Philippines is working on regulating crypto related trading platforms by drafting rules for domestic crypto exchanges.
The new rules will seek to protect investors will creating a way for digital currencies to grow in the country. According to the new regulations, crypto exchanges will soon operate as regulated platforms.
The Philippines Securities and Exchange Commission commissioner Ephyro Luis B. Amatong noted that, “We are already working on the draft regarding crypto exchanges and the draft will be ready before the end of September.” Amatong also revealed that the authority is also in talks with the country’s central bank to form a common regulatory firm for the local crypto sector.
As a matter of fact, the Philippines has been at the forefront of the implementation of digital currency related activities.
”The regulation of the crypto sector will give traders more protection on their investments. In additions, crypto startups will be able to raise funds in a regulated manner through Initial Coin Offerings. More to that the new regulation will require international ICOs to have branches in the country.
Regulation in the Cryptocurrency Sector
Unlike other central banks which have been against digital currencies, the Philippines central bank has taken a favorable approach. The bank has even been encouraging the trading of digital currencies like Bitcoin. BSP deputy director Melchor Plabasan was quoted in 2016 saying that the bank was working on guidelines that would only guide the sector to become a better sector.
The regulation of the crypto sector has been a big discussion all over the world.
Almost all central banks are working either to regulate the sector to completely ban the sector. The only country that is so far operating a regulated crypto sector in Japan. Japan made digital currencies legal and regulated the exchanges operating in the country. Exchanges in Japan have gone ahead to start self-regulation in an effort to follow the country’s tough regulatory measures.
Regulating the crypto sector will, however, have negative impacts in the short term and therefore considered as a long-term project. Regulation can lead to the reduction of money laundering and the illegal use of digital currencies especially in the dark web. With regulation, some of the crypto experts have predicted that Bitcoin can even hit $50,000 before the end of 2019.
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