Fintech Alliance PH Pushes for Consumer Protection-Focused Crypto Regulations
Fintech Alliance.PH, a collaboration amongst strategic players in the digital finance space operating in the Philippines, announced its support for a risk-based regulatory regime that puts consumer protection at the core.
The Senate Bill 184 and Senate Resolution 126 was put forth on August 23 during the public hearing of the Senate Committee that was headed by Senator Mark Villar.
Fintech Alliance PH, along with the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission, are working together to implement stricter qualifications for the management and licensing of digital assets exchanges, with the goal of better protecting retail investors and promoting massive consumer education.
The alliance’s priority for tighter regulation stems from the swift rise of decentralised virtual currencies like cryptocurrency in the ASEAN region.
Thailand recently approved four new digital assets companies, while Cambodia was the first ASEAN country to roll out its first retail central bank digital currency (CBDC) called Project Bakong.
The Philippines is set to launch its respective pilot, along with Vietnam and Indonesia.
However, the alliance noted that the inherent volatility of crypto as an asset class cannot be ignored, and that retail investors’ recent losses in the digital assets market must be taken into consideration.
“Due to crypto’s decentralised nature, a lack of comprehensive regulation, and the non-transparent qualities of many crypto firms, this virtual currency is much riskier for investors than equities, bonds, gold, or traditional assets.
There must be more clarity on the rules of engagement for emerging technologies such as non-fungible tokens or NFTs, NFT marketplaces, decentralized finance, and exchange-traded funds or EFTs, among others,”
said Lito Villanueva, Founding Chairman of the Fintech Alliance.PH.