Philippines Authorities Give Cryptocurrency Companies Three Months for Legalization
Date: 2023-12-14 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
Regulatory Deadline Extended to Three Months
The Philippines Securities and Exchange Commission (SEC) has set a crucial deadline for cryptocurrency companies to legalize their operations within the country. Originally, the SEC had granted a one-month period for industry companies to submit their registration applications. However, taking into account the upcoming Christmas holidays, government officials decided to extend the deadline to three months to "ease the burden on Filipino investors."
The announcement was made during the "Expanding Consumer Rights and Opportunities: SEC Directive on Unregulated Exchanges" event held on November 28. SEC's recommendations were initially introduced with a one-month compliance period, but the extension was deemed necessary given the holiday season.
Binance Under Scrutiny
The decision was prompted by a question from an event participant regarding the potential ban on the activities of the largest cryptocurrency exchange, Binance, in the Philippines. In late November, the regulator warned that Binance was operating without a license in the country and called for a ban on Binance advertisements on social media. In May, a similar warning was issued to the cryptocurrency exchange Gemini.
Commissioner Kelvin Lee clarified that the activities of all other unregulated exchanges, including OctaFX and MiTrade, would also be prohibited in the country if they fail to take steps to comply with regulatory requirements. The list of unlicensed cryptocurrency companies is extensive, while the country has only 17 registered Virtual Asset Service Providers (VASPs) offering fiat-to-crypto conversion services.
Operational Cost Advantage
Compared to fully licensed exchanges, Binance imposes lower operational costs on local traders. However, the SEC emphasized that Binance's lack of registration and non-compliance with Philippine laws necessitated regulatory action.
The Philippine government had previously expressed its readiness to draft cryptocurrency taxation legislation by 2024, indicating a broader commitment to regulate and legitimize the cryptocurrency industry within the country.
