The Philippine Securities and Exchange Commission (SEC) has removed broad provisions and introduced stricter operational requirements in the newly revised draft rules for Crypto-Asset Service Providers (CASPs).
The proposed issuance, now titled “SEC Guidelines on the Operations of Crypto-Assets Service Providers,” removes or revises several high-level policy sections from the original “SEC Rules on Crypto-Assets Service Providers,” in favor of highly detailed technical and compliance guidelines.
What’s New
- Minimum Capital Requirement: CASPs must now have at least ₱100 million in paid-up capital, a figure not specified in the older draft.
- CASP Form 1: Applications must now include over 15 specific documents, including risk matrices, IT architecture descriptions, and board resolutions.
- Operational Frameworks: New detailed requirements include client support systems, cyber resilience, local data centers, and independent audits.
- Record-Keeping: Monthly, quarterly, and annual reports must be submitted, covering user activity, trading records, and financials.
- Clear Limitations: The new draft prohibits leverage trading, unauthorized crypto derivatives, and proprietary trading of customer funds (unless approved by the SEC).
- Exemptions: Under the new draft, the SEC may grant an exemption from registration if the exemption is consistent with public interest and investor protection. This is a new regulatory flexibility.
What Was Revised
- Marketing and Promotions Rules: No more explicit rules on CASP advertising or social media promotions.
- Insider Trading and Market Manipulation Provisions: These were fully detailed in the older version but are only briefly mentioned or condensed now.
- Public Offering and ICO Guidelines: Disclosure document rules and offering statements are no longer part of the guidelines.
- Enforcement Tools: Provisions on civil actions, disgorgement funds, and coordination with other agencies were removed.
Key Focus Areas in New Draft Rules
| Area | Summary |
| Registration | Must submit detailed compliance documentation and meet capital standards |
| Trading and Listing | Strict vetting of crypto-assets before admission to platform |
| Risk Management | Required annual audits, vulnerability tests, and IT documentation |
| Customer Protection | Segregation of client assets and mandatory suitability assessment |
| Penalties | Tiered fines based on violation count, with possible registration cancellation |
Registration, Penalty, and Fees
Public Feedback Deadline
Stakeholders may submit their comments on the draft until April 26, 2025 to [email protected] or deliver hard copies to the SEC’s PhiliFintech Innovation Office in Makati.
Full Document
This article is published on BitPinas: SEC New Draft Crypto Rules Adds ₱100M Capital Requirement, Registration Exemptions
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