The Securities and Exchange Commission (SEC) is preparing to release its final regulations for crypto-asset service providers (CASPs) as part of its ongoing effort to address the risks associated with innovative financial products.
The SEC recently issued draft guidelines on the operations of CASPs for public comment and is now reviewing industry feedback as it finalizes the rules. “The commission is drafting new rules on crypto-asset service providers, which aim to enhance its oversight and supervision of businesses that offer, trade and otherwise engage in innovative financial product activities,” SEC chair Emilio Aquino said.
“We are now considering suggestions and recommendations from the industry as we draft the final guidelines,” he added.
Aquino emphasized that the SEC’s broader goal is to transform the Philippines into a secure and attractive hub for financial technology (fintech) development while safeguarding the country’s financial system.
Following the Philippines’ removal from the Financial Action Task Force (FATF) gray list in February, Aquino expects renewed global investor interest in the country’s fintech landscape. “FATF countries have already hailed the Philippines as a regional leader in anti-money laundering and counter-terrorism financing (AML/CFT) reforms. We hope that our fintech companies will likewise adopt this branding and emerge as early adopters of AML/CFT standards as you begin to grow,” he said.
“Let’s seize this opportunity to create new solutions and promote financial inclusion among the unbanked and underbanked with the proper safeguards in place,” Aquino added.
He also stressed the vital role fintech companies and other digital players will have moving forward, particularly with another FATF mutual evaluation scheduled for 2027. “By then, FATF will have a strong focus on virtual assets and VASPs. For the SEC, we want to ensure a smooth balance between innovation and investor protection. There have been concerns on how illicit actors can use virtual assets to perpetrate financial crimes,” Aquino said.
The upcoming CASP regulations aim to reinforce the SEC’s oversight of businesses dealing with the offering, trading, and management of crypto assets. The draft rules recognize the rapid development of crypto-asset markets, new business models, and innovative services, while aiming to establish a strong legal framework that protects consumers and the financial system from potential risks.
The proposed guidelines seek to ensure consumers have the option of engaging in crypto activities through licensed and regulated intermediaries. The SEC had earlier called for public comments on the draft rules by April 26, 2025.
Aquino noted that while the country’s exit from the FATF gray list marks significant progress, the Philippines must remain vigilant to uphold international standards and adapt to emerging financial risks.
In a move to modernize regulatory infrastructure, Aquino announced that the SEC would soon launch the Hierarchical Applicable Relations and Beneficial Ownership Registry (HARBOR). Through HARBOR, the SEC will facilitate data-sharing agreements with partner agencies, making beneficial ownership information and corporate data more accessible.
Aquino explained that HARBOR would “reduce manual interventions and facilitate a secure, efficient disclosure process for corporations,” while improving the accuracy of beneficial ownership submissions.
“Our comprehensive goal is to streamline beneficial ownership disclosures, increase nonprofits monitoring and step up investigations and prosecutions of investment and related fraud,” he said.
