SEC to Work With NTC to Block Unregistered Crypto Exchanges

In a significant move, the Philippine Securities and Exchange Commission (SEC), as revealed by Commissioner Kelvin Lee, is going to work with the National Telecommunications Commission (NTC) to block unregistered cryptocurrency exchanges and platforms operating in the country named in its advisories. The Commissioner revealed this in an interview with BitPinas during the YGG Web3 Games Summit.

This initiative is part of the SEC’s broader strategy to safeguard investors from potential risks associated with unregulated digital asset platforms.

SEC to Start Naming Unregistered Platforms in Advisories

While the SEC has been sending out advisories vs unregistered platforms, it only previously released a general advisory vs unregistered exchanges in September 2021 and another one in December of last year. This was released one month after the implosion of the international crypto exchange FTX.

But most recent advisories have already included the names of unregistered exchanges, such as the advisory vs OctaFX.

SEC To Work With NTC to Block Access to Unregistered Exchanges #shorts

In the BitPinas interview, Commissioner Lee revealed:

“About a week or so ago, we also had advisory against particular entities that are operating on unregistered I won’t name them today, but we have named some with the goal to block them out from our internet space. “

Kelvin Lee, Commissioner, SEC

SEC to Partner With NTC to Block Access to Unregistered Exchanges

To continue its efforts, Commissioner Lee also revealed working with the NTC to shut down access to the unregistered platforms named in the SEC advisories.

“Within the Philippines, we are actually partnering with the NTC. The goal is to secure the Filipino investors.”

Kelvin Lee, Commissioner, SEC

When the NTC restricts access to a website, individuals in the Philippines with a Philippine IP address are unable to visit these sites on the internet.

The regulator made the remark following a question about whether or not the local SEC will follow how its U.S. counterpart is dealing with crypto exchanges, whether registered or not.

The U.S. SEC, Lee mentioned, has a different style, while PH SEC will continue with the advisories:

“We will keep coming up with advisories and we’re moving forward to shut down with the NTC some of those entities that are named in the advisories, precisely because we don’t want you to operate here If you’re not registered.”

Kelvin Lee, Commissioner, SEC

The Challenge of Investing in Unregistered Entity

The FTX situation, Commissioner Lee said, delayed the regulator’s issuance of its guidelines for digital asset exchanges (which is now called “Digital Asset Security Service Provider Rules.”), In a previous interview, Lee said the rules were actually ready for public consultation November of last year.

To find the list of BSP or Bangko Sentral ng Pilipinas-registered virtual asset service providers, click here.

FTX Situation Delayed The Draft Rules

“We were actually ready to launch late last year ‘yung draft public dissemination, but because of what happened with FTX, it was the time when things came crashing and a continuation of what they call crypto winter. So, because of that we chose to forgo the release, we held it back; our decision was to make the rules a little more strict in light of what is happening,” Lee explained in a previous interview.

The Commissioner stressed that investor protection is a primary mandated of the SEC, and that if a user invests in an unregistered platform, be it a crypto exchange or FOREX, and that exchange imploded, the Filipino won’t have any recourse:

“The challenge is that if you invest in an unregistered entity, you invest in something that is technically operating abroad but targets you here in the Philippines. What does that mean? That means they are operating without legal authority. They are operating without any safety nets for the general public. If the entity encounters a problem, where will the Filipino go? Nowhere. You can of course come to us but our jurisdiction is limited to just the Philippines. ‘We like to help you, but this is outside our jurisdiction, we cannot go after them if they are in the U.S or in the Caribbean,’ for example.”

Kelvin Lee, Commissioner, SEC

Thus, the Commissioner reiterated the points he has been making in multiple forums such as the event where the interview was conducted: If you are going to invest, you check with the SEC first.

“If you’re going to invest, you check with the SEC first, try to make sure that it’s registered. Make sure you do your due diligence before you invest in anything, before putting in your hard earned money into anything.”

Kelvin Lee, Commissioner, SEC

“If it is registered, you have atleast some safety net in the Philippines. However, if it is unregistered, then there’s a problem, especially if the platform imploded or suddenly vanishes, whether that’s crypto, lending, or whatever.”

Kelvin Lee, Commissioner, SEC

This article is published on BitPinas: Interview: SEC To Work With NTC to Block Access to Unregistered Exchanges

Disclaimer:

  • Before investing in any cryptocurrency, it is essential that you carry out your own due diligence and seek appropriate professional advice about your specific position before making any financial decisions.
  • BitPinas provides content for informational purposes only and does not constitute investment advice. Your actions are solely your own responsibility. This website is not responsible for any losses you may incur, nor will it claim attribution for your gains.

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