The Philippine Securities and Exchange Commission (SEC) has taken a major step towards regulating the country’s rapid growth Digital access industry by issuing draft guidelines for Crypto-Assets service providers (CASP).
The proposed rules, entitled “Sec guidelines for operations in the Crypto-Assets providers (CASP guidelines)”, describe strict conditions for companies that offer crypto assets during trade in the Philippines. Most remarkably, the guidelines introduce a mandatory minimum paid capital of $ 100 million ($ 1.75 million) for units seeking registration such as CASP. At the same time, the draft allows potential exemptions from registration, depending on a unit’s circumstances and public interest.
SEC released the draft through its Philifintech Innovation Office and invites comments from interested parties until April 26. The agency made it clear that all companies operating in the Philippines that offer digital assets as part of their services must follow these upcoming CASP regulations. This public consultation period marks a decisive phase before the guidelines are completed and formally adopted.
Capital requirements to ensure market stability
SEC seems to be intended to just acknowledge economically healthy companies in Ecosystem for digital access In order to promote market stability and protection interests. In addition, the draft emphasizes that capital requirements are going beyond complying only the PHP100 million ($ 1.75 million). Applicants must prove that their operations have financial ability to continue operations, fulfill all debt obligations when they arise and maintain enough resources to cover predictable or conditional debts. This indicates that economic resilience and long -term vitality will be part of the SEC evaluation process.
Comprehensive document requirements for registration
In order to qualify as a CASP, a company must be a duly registered company with Sec and have its primary purpose, stated in its articles of association, explicitly related to digital asset services. The application process also means that different documents are submitted according to CASP form 1. These include listing and delisting of standards for digital assets, trading rules and disclosure, business construction, SERC authorization to verify bank accounts and detailed technical descriptions of software, hardware and communication infrastructure.
Other requirements include information about custodians or registrar for the digital assets, a board resolution approving the application, CVs for key management and IT personnel, copies of relevant licenses and agreements, a comprehensive risk of information and documentation related to the company’s independent risk control unit.
In addition, applicants must submit a business plan that describes marketing and financial strategies, proof of payment fee payment, trade processing and decommissioning and a company from the management to actively monitor risk management.
SEC can grant exceptions based on general interest
While the draft sets strict registration guidelines, it leaves room for exceptions. Section 3 of the draft States, “The Commission, through an order, after an application for an exemption from CASP registration has been submitted, may grant such an exception after determining that the said order is compatible with the general interest and protection of investors.” This discretionary power allows Sec to release some applicants from full compliance if they can justify it under general interest.
However, exceptions will not be automatic and must be formally applied. The draft currently does not describe specific types of units that may qualify for such relief, which indicates that decisions will be made on a case -by -case basis.
Coordination with other supervisory authorities is maintained
The proposed CASP guidelines also clarify that they do not override the authority of other supervisory authorities, such as Bangko Sentral NG Pilipina’s (BSP), which monitors certain aspects of digital asset-related activities. This indicates one Multi -layer’s regulatory structure on the Philippineswhich requires digital assets navigating overlapping compliance regimes depending on the nature of their operations.
The impact of the industry: consolidation and compliance
The Filipino Sec’s move to regulate the digital asset industry is consistent with global efforts to introduce safeguards, protecting consumers and strengthening market integrity. The high capital threshold is likely to filter out undercapitalized companies and lead to greater consolidation in the industry, which possibly benefits more established players.
However, the flexibility offered by the exception may favor innovative or smaller companies that can show responsible operations in line with public interest and investors’ protection. This double strategy, stiff on baseline requirements but open to well -righteous exceptions, can help create a more stable but dynamic digital asset environment in the Philippines.
Next step: Review and complete guidelines
After the consultation period, the Commission is expected to review comments and complete the guidelines. According to the efficiency clause of the draft, the circular will enter into force 30 days after publication in two newspapers of general circulation. Introducing these rules can significantly shape the future of digital regulation in the Philippines and influence how service providers work and how investors collaborate with digital assets.
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