Philippines SEC Opens Applications for Crypto-Focused Regulatory Sandbox

The Securities and Exchange Commission (SEC) of the Philippines has opened applications for its Strategic Sandbox (StratBox) program, aimed at fostering innovation in the growing field of crypto-asset services.

Outlined in SEC Memorandum Circular No. 09-2024, the StratBox initiative is designed to create a controlled environment where Crypto-Asset Service Providers (CASPs), such as crypto exchanges and virtual asset custodians, can pilot new products, services, and business models.

The sandbox will allow regulators to collect valuable insights into the risks, benefits, and regulatory challenges associated with crypto-asset operations, according to reports from local media outlets.

The data gathered through the StratBox will support the development of more robust and effective regulatory frameworks, while also focusing on investor protection, market integrity, and the overall stability of the financial system.

Although primarily aimed at CASPs, the SEC also welcomes applications from innovators in other areas of financial technology.

Interested entities must complete the SEC StratBox Application Form and submit it along with supporting documents to the PhiliFintech Innovation Office, as instructed in the circular.

The SEC is encouraging eligible participants to apply and take part in shaping a transparent and secure regulatory environment for digital assets in the Philippines.

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Earlier this year, a group of Philippine banks joined forces to launch a peso-backed stablecoin, PHPX, to enhance cross-border payments and promote financial inclusion.

The PHPX token is set to debut between May and July, leveraging decentralized ledger technology (DLT) via the Hedera network.

Singapore-based fintech startup Just Finance is spearheading the project, with key participants including UnionBank of the Philippines, Rizal Commercial Banking, Cantilan Bank, and Rural Bank of Guinobatan.

Last year, the Philippines central bank, Bangko Sentral ng Pilipinas (BSP), gave the green light for controlled trials of a national stablecoin that would be pegged 1:1 to the local peso.

Philippines SEC Unveils Draft Rules for Crypto Service Providers, Seeks Public Feedback

In December, the Philippine Securities and Exchange Commission (SEC) published a draft regulatory framework titled “SEC Rules on Crypto-Assets Service Providers (CASP Rules),” inviting stakeholders to submit feedback.

Under the draft rules, crypto firms must register with the SEC and obtain a CASP license to operate in the Philippines.

Eligibility requirements include being registered as a stock corporation, employing at least four local residents, and meeting minimum capital standards.

CASPs will also be subject to regular audits and required to align with the National Cybersecurity Plan to mitigate money laundering and cyber risks.

The framework also includes rules for public crypto asset offerings. Firms must publish a disclosure document detailing issuer information, the underlying technology, and risk disclosures 30 days prior to the sale.

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