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PSE Considers Hosting Structured Crypto Trading ‘to Protect Investors’

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The Philippine Stock Exchange (PSE) may soon be the platform where Filipinos can trade cryptocurrency. 

In an online news briefing, PSE President Ramon S. Monzon said it is considering to host crypto trading on the stock exchange itself, primarily for the protection of investors. For that to happen, guidance from the Philippines Securities and Exchange Commission must be clarified first. “We’re waiting for the rules from the Securities and Exchange Commission,” Monzon said. 

“It’s an asset class that we cannot ignore anymore.” 

There are currently seventeen virtual asset service providers (VASPs) licensed by the Bangko Sentral ng Pilipinas to facilitate exchange of crypto to fiat and vice versa locally. Among them are Betur Inc. (, PDAX, Moneybees, BloomX, and Coexstar.

For Monzon, however, if there’s going to be any structured crypto trading in the Philippines, that should be in the PSE. “That should be with us so we can engage in investor education and protection,” Monzon added.

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Guidance from the SEC is something VASPs are also looking forward to. For now, the SEC releases advisories primarily regarding projects soliciting investments to the public under the guise of token offerings. Still the SEC was clear in previous advisories that its warnings are not aimed to hinder or pose significant risk to businesses and cryptocurrency projects but merely to protect both the registered entities and the public from any irregularities arising from unauthorized operations.

In its year in review on BitPinas, the BSP said it “views virtual currencies, in particular the technology behind it, as having potential to transform the provision of financial services. However, we are also cognizant of the risks it poses  to the integrity and stability of the financial system, as well as to consumers who may be less  informed about how virtual currencies work.” Virtual currency is the earlier term used by the BSP to refer to cryptocurrencies. 

“The BSP wants consumers to understand that investing in virtual currencies, due to its volatility, presents enormous risks which might result in financial losses, and there is no guarantee for recovery nor recourse. Hence, a consumer engaged in such activities should be fully prepared to protect his/her accounts and minimize risks by  maintaining only a sufficient amount of virtual currencies to address transaction requirements, ensure confidentiality of personal information and transaction details, secure virtual currency-related email accounts, observe basic internet security, and use multi-factor authentication.”

Nichel Gaba, CEO of PDAX, one of the local VASPs that also operates an order book platform like the PSE, said cryptocurrencies are a natural progression for any financial institution. “For any financial institution, exploring cryptocurrencies is a step in the right direction.  Certainly, crypto trading is very different from equities, but the necessary regulatory safeguards are similar. PDAX continues to work with the regulators on these developments,” Nichel said in an email message.

Ramon S. Monzon’s comments came at the back of the announcement of a new independent director Gilberto C. Teodoro Jr. and nonbroker director Tomas I. Alcantara. 

The PSE said it would be continuing to promote policies that can improve market depth and efficiency. 

Source: BusinessWorld

This article is published on BitPinas: PSE Considers Hosting Structured Crypto Trading ‘to Protect Investors

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