Philippine Stock Exchange eyes cryptocurrency trading once regulators release the rules

The Philippine Stock Exchange (PSE) wants to be the platform for trading crypto assets when regulators give the go signal.

Photo from CNBC

People are attracted to cryptocurrencies due to their volatile nature

According to President and CEO Ramon Monzon, PSE should be the exchange platform for crypto assets. Cryptocurrencies like Bitcoin and ether are digital assets, but very few crypto trading platforms are listed, like Wall Street's Coinbase.

The CEO said that this idea came up during a top management meeting two weeks ago. Monzon added,

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 important[ly], we'll be able to have investor protection safeguards especially with a product like crypto.

Since cryptocurrencies are not issued by a central authority, it can be hard for the government to regulate them. Monzon said they have no fundamentals, it's all capital gains. He explained that many people are attracted to cryptocurrencies "because of the volatility". However, he warned that "instant riches could be instant poverty too." 

The PSE said cryptos are an asset class the Philippines cannot ignore anymore given mounting interest. The stock exchange chief further explained that PSE is not in a position to be a platform for trading cryptocurrencies. 

There are no rules yet from the regulator but the national stock exchange is waiting for the rules from the Securities and Exchange Commission (SEC) and other regulators on how crypto or digital asset trading will be governed.

Monzon mentioned that SEC has been gathering comments from investors, the public, and even banks since 2019. The agency has been trying to find out their inputs about establishing a cryptocurrency exchange in the country.

Any thoughts on this issue?

Source: CNN