TechFlow news, December 24 — The Securities and Exchange Commission (SEC) of the Philippines has introduced comprehensive regulatory rules for digital assets, covering disclosure requirements, public offerings, trading, and marketing activities. The regulations aim to strengthen investor protection and enhance transparency in the emerging digital asset market.
Under the new guidelines, issuers of digital assets must submit a disclosure document to the SEC at least 30 days prior to any marketing activity or public sale. The document must include detailed information about the offeror, issuer, key features, risks, and underlying technology of the digital asset, and must clearly disclose potential risks such as loss of value and limited transferability.
Digital assets classified as securities are required to file a registration statement approved by the SEC before any public offering. According to the definition under the Securities Regulation Code (SRC), initial coin offerings (ICOs) that constitute sales of securities fall within the scope of this rule.
Entities issuing or trading digital assets must comply with anti-money laundering laws (AML) and the reporting requirements set by the SEC. The SEC emphasized that violations may result in penalties, suspension, or revocation of licenses.
The new regulations will take effect 30 days after publication in two general-circulation newspapers. All stakeholders may provide comments on the proposed draft of the "SEC Rules on Digital Asset Service Providers."
