Financial consumer protection rules to cover crypto scams

The Securities and Exchange Commission (SEC) has issued the draft rules of a new consumer protection law that would give regulators more teeth in going after perpetrators of financial crimes while recognizing cryptocurrencies as securities that would also fall under their ambit.

The draft rules were released for public comment, in line with Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA).

According to the SEC, these would strengthen regulators by providing them with rule-making, surveillance, inspection, market monitoring, and more enforcement powers.

The proposed guidelines also seek to classify the once ambiguous nature of cryptocurrencies such as Bitcoin, Ether and similar tokenized securities products as securities.

The draft rules will cover all financial products and services and financial service providers under the jurisdiction of the SEC. These financial products and services include credit, securities, and investments, including digital financial products or services which pertain to the broad range of financial services accessed and delivered through digital channels, the SEC said.