Planned gov’t regulatory framework for digital assets backed

MANILA  -A trade group of blockchain professionals on Tuesday expressed support for a government framework in the works that will regulate the issuance of digital assets, signaling acceptance from an industry that highlighted decentralization as a strength for the sector.

Blockchain Council of the Philippines co-convenor Ida Tiongson said they were hoping the regulatory framework for cryptocurrencies and blockchain technology being crafted by the Securities and Exchange Commission (SEC) would be completed soon.

“It’s an important law and we hope that (it) will be launched very soon,” she said during the press conference for the Philippine Blockchain Week 2023, which is scheduled from September 19 to 21.

Tiongson recalled that the framework –which is expected to provide clear rules and regulations tailored for these technologies—was supposed to be released last year but was delayed by the SEC after the collapse of the Bahamas-based cryptocurrency exchange FTX.

The SEC purportedly decided to first study what happened to FTX, reported as the world’s second largest cryptocurrency exchange, to add provisions that may be needed to avoid a similar incident.

PUBLIC REGISTRY

The council official said they would also support provisions that would mandate the creation of a public registry to improve the traceability of all transactions in a blockchain platform and ensure transparency.

“We are hoping that one day you can sell your property digitally using blockchain (technology) and you will not be scared that it’s actually not a true title because of the accountability, traceability, and the authenticity,” she said, noting one of the use case examples of blockchain technology.

Meanwhile, Blockchain Council of the Philippines founding president Donald Lim said that they support some degree of regulation for the industry, but noted that the government and stakeholders should strike a balance to ensure the sector’s growth.

“There should always be a balance. You cannot say that because it is decentralized, you will not follow the rules,” Lim told reporters on the sidelines of the press conference.

“Right now, we are working with each cabinet sector and providing recommendations. We are also trying to get them to speak to us if they want to drive forward some measures, and then we give them advice,” he added.

Opportunities

Lim said that the Philippines’ blockchain industry has a bright future, noting that there are 4.3 million crypto assets owners in the country.

The council officials also said they were expecting at least 10,000 attendees to the Philippine Blockchain Week in September, which will be held at the Marriott Grand Ballroom in Pasay City.

“This is really the entire Philippine ecosystem waking up to Web3 (technology) and will put the blockchain spotlight on the Philippines. We believe that Web 3 is the future but we need to bring everyone there to make a successful and sustainable future,” Lim said.

-CSN

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