Data from Chainalysis, a cryptocurrency or crypto market researcher and consultancy, show the Philippines has the second biggest population adopting cryptocurrency after Vietnam.
Arlone Abello, founding chairperson of the Innovative Movement of the Philippine Association of Crypto Traders, said the recent numerous warnings from the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) against unregistered crypto exchange providers signal further growth in this industry.
“Thailand’s recent decision to ban unregistered crypto exchanges is creating a trend in Southeast Asia of regulators taking action against unauthorized exchanges. This action sets a precedent that more crypto exchange registrations can be expected going forward,” he said.
Cryptocurrencies are virtual currencies that use a digital data system called blockchain. They are usually available on mobile apps and replace cash for various purchases, be exchanged for cash remittances from overseas Filipino workers, or traded like stocks as the cryptocurrency value fluctuates.
However, the BSP and the SEC have been aggressive in monitoring and shutting down fintech and other financial firms, including remittance companies to prevent unregistered and possibly fraudulent cryptocurrency exchanges.
According to a Forbes report, The United States, Canada, the United Kingdom, and most of the state members of the European Union have imposed soft regulations on cryptocurrencies, as some reported cryptocurrencies were used for money laundering and terrorism.
Meanwhile, these countries prohibit cryptocurrencies: China, Bangladesh, Egypt, Morocco, Nepal, Iraq, Tunisia and Qatar.
“The local SEC’s move aligns with the US counterpart’s approach of requiring crypto exchanges to register, not necessarily a full clampdown,” he said.
Abello, who is also the chief executive officer of Global Miranda Miner Group and a certified member of the Society of Technical Analysts, said the Philippine SEC helps build a global community of responsible crypto traders and well-informed investors.
These statements came after the SEC in April warned the public against investing through Coinmate Plus Earning Opportunity_Coinmate Plus/CMP Crypto Trading for non-registration of the business and fake profits to investors under a Ponzi-like scheme.
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The local SEC had warned the public to also stop investing with crypto service providers XM, Etoro, and SparkFX Bitcore.
These followed the SEC’s advisory last November against investing through the Binance app for also skipping the registration process.
Binance has become relatively more popular through its aggressive marketing on social media and availability at Google and Apple app stores.
Last 19 April, the SEC sent a letter to both technology firms to remove Binance from their apps for unauthorized investment solicitation activities.
“It appears that the operators of the platform are registered brokers/dealers overseas. But based on the commission’s database, the operator of the platform Binance is not registered as a corporation in the Philippines and operates without the necessary license,” SEC said.
While these moves by the SEC could stir prejudice or a “chilling effect” against owning and trading crypto, Abello said some domestic traders are still active.