To deal with crypto trading, PSE stated it already has a solid infrastructure and investor protection precautions in place.
The PSE President, on the other hand, cautioned investors not to be seduced by crypto market volatility in their pursuit of rapid wealth.
The Philippines, an East Asian country, appears to be gearing ready to increase its crypto game! According to a CNN report from last Friday, July 2, the Philippines Stock Exchange (PSE) is seeking regulatory license to begin cryptocurrency trading.
This will be the country’s first legal crypto trading exchange, according to PSE president and CEO Ramon Monzon. The Securities and Exchange Commission (SEC) of the Philippines has yet to establish crypto trading guidelines. The notion to enter the crypto industry, according to the PSE president, was addressed two weeks ago during a top management meeting. Monzon continued, “If there is to be any crypto exchange, it should be done at the PSE.” Why? The first reason is that we have the necessary trading infrastructure. But, more importantly, with a product like bitcoin, we’ll be able to have investor protection features.
This isn’t the first time the SEC has had to deal with a request for a cryptocurrency exchange. Government officials began looking into the laws that would govern crypto asset trading in 2019. The Philippine Securities and Exchange Commission (SEC) began soliciting feedback from banks, the general public, and investors on whether the country was ready to launch its own cryptocurrency exchange.
In addition, the Philippines has been attempting to promote itself as a regional crypto powerhouse. In order to achieve this, the country established Special Economic Zones in Cagayan in 2018.
President of the PSE – Be Wary of Cryptocurrency Market Volatility
Monzon did, however, issue a caution about the crypto market’s volatility. He also mentioned introducing an organized adjustment to the cryptocurrency industry. Monzon stated, “Yang crypto wala namang fundamentals yan eh, huh, eh, eh, eh, eh, eh (Cryptocurrencies have no fundamentals). It’s all about capital gains, which means the price I get for my cryptocurrency is the same amount you’re prepared to pay… Because of the volatility, a lot of people are drawn to it. Instant wealth could also mean instant destitution…
If there is any organised cryptocurrency trading in the Philippines, dapat sa atin yan (it should be under our watch). Unfortunately, we are unable to do so at this time due to the lack of regulations from the regulator (we do not yet have regulations from the regulator).
We can expect a regulatory go-ahead anytime soon, with PSE leading the charge to introduce crypto trading.
Cryptocurrency Trading Licensing
The Philippines’ central bank, the Bangko Sentral ng Pilipinas (BSP), strengthened its regulatory oversight of the crypto area earlier this year, in January 2021. For crypto firms operating in the country, the central bank has implemented a larger licensing scheme.
As a result, all crypto companies operating in the Philippines are required to obtain a license from the central bank. Furthermore, exchanges that solely offer crypto-to-crypto trading pairings must have central bank authorisation. Governor Benjamin E. Diokno of the BSP said at the time, “We have seen accelerated growth in the use of VCEs in the past three (3) years, and it is high time that we broaden the scope of existing regulations to recognize the evolving nature of this financial innovation and set out commensurate risk management expectations.”
It will be fascinating to watch if the PSE will build the crypto trading facility in collaboration with the central bank. Philippines Crypto Exchange Philippines Crypto Trading Philippines SEC PSE stands for Philippine Stock Exchange./n
