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A principal regulator in the Philippines has announced: “The direction is for us to consider this so-called virtual currencies offerings as possible securities in which case we will apply the Securities Regulation Code,” the country’s Commissioner, Emilio Aquino, of its Securities and Exchange Commission (PhSEC), signaled on 21 November. Movement towards proper legalization comes after much consideration and monitoring, along with consultation with its central bank.

Philippines Ready for Crypto Revolution?

Perhaps looking to its prosperous neighbor, Japan, the Philippines seems ready to welcome a cryptocurrency revolution within the archipelago.

Agricultural firm Calata Corp. was recently stripped from its formal stock exchange for improprieties, and has since taken the latest craze in public fundraising, the initial coin offering (ICO), hoping to market Calcoins. ICOs are enjoying massive growth nearing upon 4 billion USD this year. It appears Philippine regulators are aware.

Commissioner Aquino continued, “This initial coin offering — depending on, as said, the facts and circumstances in which the offering is made especially in raising capital — may be considered as securities, in which case they cannot just be offered without registering with SEC.”

Bitcoiners are philosophical about registries, as though they do tend to slow innovation, they’re also better than a hostile ban. The PhSEC has been monitoring cryptocurrencies for a while.

“We have seen particularly in the social media sites that there are offers of initial coin offerings, most popular of which, of course [are] bitcoins and ethereum … but [there are] new ones which may be considered as securities,” the Commissioner added. “That’s the direction we’re taking, basing on the present regulations passed by the US SEC, our other counterparts in Malaysia, Hong Kong and Thailand.”

Bangko Sentral ng Pilipinas (BSP) “Open-Minded”

The PhSEC Commissioner explained conversations with its central bank, BSP, were also being had in earnest. “There are at least five or six companies which have already been registered and endorsed by the BSP but these are limited [only] to money services businesses to address remittances being done by OFWs (overseas Filipino workers) to bring down the cost,” Commissioner Aquino said.

BSP Governor Nestor Espenilla, Jr. suggested they “have an open-minded approach to fintech (financial technology). This means that we take a very active role in ensuring that our policies provide opportunities for innovation.”

“Today, there are two virtual currency exchangers registered with the BSP and several more are under evaluation,” the central banker emphasized.

At year’s start, BSP issued regulations for exchanges which included anti-money laundering provisions. The effort then, as now, was to keep the country liquid with regard to remittances. Increasingly, more people in countries with tighter capital controls are using bitcoin, for example, as a way to send money home.

“It’s very simple, what they are allowed to do is to exchange a cryptocurrency or bitcoin into peso equivalent,” the BSP Governor stated frankly. “It’s just moving from normal money to cryptocurrency.”

In August, The Manila Times Online also reported Mr. Espenilla saying “the central bank was now regulating the operations of two bitcoin exchanges, which he described as ‘local-based’ with ‘international roots.'”

What do you think of the latest moves in the Philippines? Tell us in the comments below!

https://news.bitcoin.com/philippines-move-in-direction-to-legalize-bitcoin-as-a-security/

Since it is impossible to prohibit, it is necessary to legalize. I wonder how before that people used it?). As if money laundering is impossible without a crypto currency

I am predicting a big boom for Bitcoin and cryptocurrency in the Philippines. There is a big opportunity for the country to be part of the leading countries where cryptocurrency is allowed to flourish and am sure this can mean that fintech companies can start noticing the country and may choose to add Philippines as one of the attractive locations to do business if not to also to locate or relocate main business headquarters.

As far as issuing ICO is concerned, there should have been a more coherent regulations and procedures so that the country can attract legit players in the industry to base their operations here. The model for this can either be Japan or Singapore where rules are strictly followed to avoid getting entangled with existing laws and orders.

Philippines is not yet a big economy but with a big number of the population already into online activities, there is a big potential here for Bitcoin and cryptocurrency to take a good root at. Philippines and Bitcoin can soon go hand in hand for economic development.

If in the Philippines the original offer of coins (ICO) will be considered as a price of securities and will oblige the relevant persons conducting them to register, this will only reduce the risks for potential investors and will help to bring order in this kind of activity. In general, the policy on the crypto currency is very loyal and therefore the Philippines will thrive along with the crypto currency.

Bitcoin is unstoppable, but that doesn't come through in the mind of the governments looking to prohibit anything having to do with Bitcoin and crypto in general. They assume that people will follow the law blindly, and thus remain a muppet that swallows everything the government comes up with. People are sick and tired of a system that thrives them further down into even more poverty, and for that reason will always look for ways to buy themselves into Bitcoin. Prohibiting Bitcoin means that everything will happen under the radar, while regulations allow them to at least maintain a certain form of control. It should be an easy choice.

The Philippines is open-minded and now ready for Bitcoin revolution!

That's great! News of legislation and legalization is coming in from a lot of countries now. Means every day, we are getting closer to the point where bitcoin becomes legitimate.

it's high time that other countries should acknowledge the existence of bitcoin and legalize it!

I think this is already expected as cryptocurrency boom is becoming mainstream. Other developed countries like Japan are doing it. Let's just hope that government legislation and regulation would encourage and not sway adaptors.

I expect this fact will rise the economy of whole Philippines and make citizens more wealthy so they will not need to look for other opportunities to earn in abroad or turning to a criminal, let's be realists. It is a wonderful country and I crypto legalization will bring many advantages to them.

Another welcoming news to the Filipinos. Although Philippines is still very young in the cryptocurrency because not everyone know about it, I'm sure this news its another step that will make bitcoin be recognize and merchants began to accept bitcoin in that country. I noticed though that is it Asia that really leading the way for bitcoin to be fully recognized globally. I guess with recognition, comes taxation.  ;D


I don't think the economy will be affected that much, although I believed that Filipinos will really get the benefit from bitcoin trading and investing.

I hope all goes well for the Philippines. As it is also known as one of the most corrupted government. Many launderers will find this as an opportunity to make more and risk less. I hope that the Filipino people will truly benefit from this not those who are in the position.

How did you know that the Philippines is one of the most corrupted government?

http://wikielections.com/top-10/top-10-corrupt-countries-world-2017-by-perception-corruption-index/

Not even in top 10, 20,30,40 and not even in top 50 to 60. So your argument is flawed. But again, its not only bitcoin that corruption existed. But back to the topic. yes Filipinos will truly get the benefits of bitcoin being legalized. Its been one of the mediums for remittances and I'm sure with this news, more and more Filipinos will used bitcoin as a avenue to send money to their love once specially that the Christmas season is coming. Glad that the Philippines, although not that industrialized and considered as third world nation have look at bitcoin in a positive way. Let's see how it goes for the Philippines and the effect on its economy.

Getting acceptance from a country with not so much flourished economy is a good surprise . This would help their economy grow at a considerate level . Even though Philippines legalized bitcoin , "legalizing as a security " is like restraining it in some ways . In case of bitcoin , this conduct would not go into right directions because people are definitely going to use bitcoin in their own ways ( since it leaves no traces) .
But the conduct of considering the price of ICO as security is a good way of getting some loyal attention from the buyers . This would only help get more supporters for the ICO .                     

Sorry if the internet says my argument was flawed. I'm just living here since birth. For 30 years i think i can say that i saw many things living in my mother country. Bitcoin is more popular here because it was used for scams. Lack of information is the main problem. What's the use of bitcoin legalization if people doesn't know what it is. Some will say google is the answer. But not all here have the luxury to surf the net. Free internet only supports social media sites that's where they saw bitcoin but i was only used by ponzis. I hope after bitcoin was legalized they will also endorse it to the people. It will be a great help even if not for holiday season, but for day to day. Btw, central bank of the Philippines or even the president doesn't represent the whole country. It's still the people living here and outside the country. Like what i said, some people had a bad experience with bitcoin due to those scammers. Do you think they saw bitcoin in a positive way after what they've lost?

Philippines is economically growing, and legalizing bitcoin as a security is a big move. Goodluck!