The Philippine Stock Exchange (PSE) is aiming to be first in line when financial regulators give the green light for crypto asset trading in the country.
On Friday, July 2, CNN reported that PSE president and CEO Ramon Monzon said the local bourse should be the country’s first exchange platform for crypto assets. He stated:
“If there should be any exchange for cryptos, it should be done at the PSE. Why? Number one, it's because we have the trading infrastructure. But more importantly, we'll be able to have investor protection safeguards especially with a product like crypto.”
The country’s stock exchange is now awaiting guidelines from the Philippine Securities and Exchange Commission and other financial regulators.
Despite his eagerness to support crypto asset markets, Monzon warned of crypto’s volatility, stating: “instant riches could be instant poverty too.”
Government regulators in the Phillipines began researching regulating crypto asset trading in 2019 when the SEC sought feedback from banks, investors, and the public on whether the country was ready to build a fully-fledged cryptocurrency exchange.
Local demand for digital payments is strong, with as much as 10% of the GDP coming from remittances from an estimated 10 million expatriate Filipinos working overseas.
The Philippines has sought to establish itself as a regional hub for crypto in recent years, opening its Special Economic Zones in Cagayan to crypto firms in 2018.
In January, the central bank established new guidelines for crypto asset service providers after witnessing accelerated growth in the use of digital assets over the past three years.