The Securities and Exchange Commission (SEC) is weighing the removal of its moratorium on new online lending platforms (OLPs), a move that could reopen the digital lending market under tighter regulatory standards aimed at protecting borrowers.

The regulator recently released a draft memorandum circular outlining proposed guidelines for lifting the freeze imposed in November 2021, when the SEC halted the registration of new OLPs to curb abusive lending practices and harassment linked to some loan apps. The proposal introduces stricter capitalization, disclosure, and consumer-protection requirements for financing and lending companies operating digital lending platforms.

Under the draft framework, financing companies would face tiered minimum paid-up capital requirements depending on the number of online lending platforms they operate, while each firm would be limited to a maximum of 10 digital lending platforms to ensure manageable oversight. Existing companies would be given a transition period to comply with the new capitalization rules.

The SEC said the move aims to balance financial inclusion with responsible lending practices as digital credit becomes increasingly popular among Filipinos who may lack access to traditional bank loans.

At the same time, the regulator has intensified enforcement against illegal operators. The SEC recently released a list of unrecorded or unauthorized online lending platforms found operating through mobile app stores and websites without the required registration.

Among those flagged were apps such as Sofi Loan, Masaya Cash, Napaka Tala, Peso Funny, MoneyAccess, Cash Ease, and PesoMate, which the SEC said are not authorized to offer lending services in the country. The commission warned that such platforms often bypass consumer-protection safeguards and may engage in abusive collection practices.

Authorities urged borrowers to verify whether a lending app is registered with the SEC before taking out loans. The regulator also encouraged the public to report suspicious platforms through its iMessage portal and hotline, as part of ongoing efforts to clean up the digital lending ecosystem.

The planned lifting of the moratorium, if finalized, is expected to allow new fintech lenders to enter the market while operating under stricter rules on transparency, capitalization, and consumer protection, marking the next phase in the Philippines’ regulation of digital lending.