Securities and Exchange Commission (SEC) Commissioner Rogelio Quevedo stated that the tokenization of real-world assets (RWAs) could address the ongoing trading lull in the Philippine Stock Exchange (PSE).
Speaking during Philippine Blockchain Week, Quevedo announced that the commission is prepared to test digital representations of physical assets within its regulatory sandbox to build investor trust and market confidence. The regulatory framework is designed to allow supervised investments in tokenized assets such as cash, gold, and real estate.
Regulatory Sandbox Testing and Investor Protection
The commission is requesting companies within the digital asset industry to submit formal applications to enter its strategic sandbox testing environment. According to Quevedo, the SEC must maintain its role as an investor protector before these financial products can be widely adopted.
“The SEC right now is ready and willing to test this real world assets,” Quevedo stated. “We are just asking the industry to apply into the sandbox so that we can really build that trust.”
The commissioner noted that proper regulatory oversight will give investors the confidence to trade tokenized assets under protections similar to traditional investments.
Jurisdiction Over Asset Platforms
The SEC clarified that all digital platforms marketing services or generating revenue from Philippine residents are legally subject to domestic regulatory approvals. This jurisdiction applies regardless of whether the platform claims to operate outside of Philippine laws.
“If you entice Filipinos to invest or to– if you advertise in the Philippines, that means that you are getting revenues from the Philippines, and therefore you are subject to regulatory approvals,” Quevedo said.
The commissioner stated that technology companies must cooperate with the regulator rather than launching without permits.
Unlicensed Crypto Applicants Face Outstanding Fines
As additional info regarding sandbox entries, the SEC revealed that three specific applicants must settle outstanding financial penalties before being admitted into the sandbox program. These platforms face fines of approximately 20 million pesos for launching and offering digital currencies without prior regulatory permits.
The commission previously coordinated with Google to remove the unauthorized applications from its store, which restricted their access to local investors. Quevedo noted that the platforms approached the SEC only after the store takedowns occurred.
“Before they can get approved the sandbox, we have to collect the penalties that we have imposed on them,” Quevedo said, adding that fines for past operations range from 5 million to 20 million pesos. The SEC stated that while applicants may request a reduction in penalties, the agency will prioritize legal compliance while determining reasonable, non-punitive fines.
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This article is published on BitPinas: SEC Commissioner: Tokenized Real-World Assets Could Address PSE Trading Lull
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