The Philippines Securities and Exchange Commission (SEC) warned users in early August against investing with Binance but despite their contentious relationship, the exchange is now helping the Philippines government formulate crypto regulations, according to a report by inquirer.net.
The Committee on banks, financial institutions, and currencies chaired by Senator Mark A. Villar, the Philippines central bank, Cagayan Economic Zone Authority, and the SEC met with Binance and the Fintech Alliance Philippines in a Senate hearing to discuss policies to regulate fintech and cryptocurrencies, according to the report.
The discussion reportedly revolved around how the country can harness new innovations while ensuring consumer protection guardrails. The initiative involves conducting research to formulate policies for digital assets, while SEC chairperson Emilio Aquino highlighted the need for strict security measures against misconduct.
At the Senate hearing, senator Sonny Angara questioned whether cease and desist orders are sufficient to curb illicit use of digital assets, especially since the fraudulent websites are available globally, according to the report.
Kenneth Stern, Binance’s General Manager for the Philippines, said:
“We strongly believe that the crypto industry can greatly benefit the Filipino people through addressing the necessity of financial inclusion through digitalization. 78% of Filipinos remain unbanked, but crypto can help decrease that number as crypto asset holders will soon surpass the number of credit card holders in the country.”
The Philippines ranked 15th in Chainalysis’ Global Cryptocurrency Adoption Index 2021. Crypto transactions in the country saw a spike of 362% in the first half of 2021, according to the report.
The members who attended the hearing agreed that creating awareness around digital assets plays a key role in ensuring customer protection. Therefore, Binance has partnered with Philippine universities and professional groups to offer free courses on blockchain, cryptocurrency, web 3.0, trading, metaverse, and decentralized finance (DeFi).