Crypto regulation may be SEC chief’s biggest legacy

The Philippines stands at a financial crossroads. With about 52% of Filipinos owning some form of cryptocurrency, the country ranks second in the world in digital asset adoption. From Bitcoin to NFTs, crypto has become more than a buzzword; it is becoming a household term, especially among young Filipinos, freelancers, OFWs and play-to-earn gamers. Yet for all its promise, this Wild West of finance continues to operate in a regulatory gray zone.

Enter Francis Edralin Lim, newly appointed Securities and Exchange Commission (SEC) chairman whose arrival comes at a critical time in the country’s financial history. As a veteran in both legal and capital market reform, Lim is uniquely positioned to lead the charge in bringing order to the crypto frontier, while pushing the Philippines further along the path of financial innovation and inclusion.

A REFORMER AT THE HELM
Lim is no stranger to reform. As former president and CEO of the Philippine Stock Exchange (PSE) from 2004 to 2010, he led the PSE through a historic demutualization and public listing process. He introduced reforms that increased market transparency, strengthened investor confidence and modernized exchange operations — all while positioning the PSE as a credible capital-raising venue in Southeast Asia.

Beyond the PSE, Lim has served as a long-time managing partner at ACCRALAW, one of the most respected law firms in the country. He has been a counsel to multinational corporations, advised the government on corporate governance and taught law and financial regulation at the Ateneo de Manila University. His deep understanding of the legal, operational and ethical dimensions of capital markets sets him apart in a regulatory environment often bogged down by either excessive conservatism or a lack of technological fluency.

What makes Lim’s appointment even more promising is his open-mindedness. Unlike regulators stuck in the old paradigms of financial gatekeeping, Lim’s record suggests a technocratic but forward-looking approach. He has supported new capital instruments, advocated for better access to public markets and now steps into office at a time when cryptocurrencies and digital assets can no longer be ignored.

WHY CRYPTO NEEDS HIS REFORM AGENDA
Crypto in the Philippines has exploded, fueled by OFW remittances, financial exclusion and youth-driven play-to-earn economies. But this growth is mostly taking place in regulatory shadows. Unregistered platforms abound. Scams have cost Filipino investors millions. And regulatory bodies have only recently started imposing clearer frameworks, including the SEC’s newly issued memorandum requiring crypto asset service providers to register, maintain P100 million in paid-up capital (excluding crypto) and submit full business model disclosures.

Lim now has a roadmap and a mandate. His challenge is to accelerate and institutionalize these efforts.

FOUR PRIORITIES FOR LIM
• Harmonize regulations across agencies

Crypto is touched by multiple regulators: the SEC for investment contracts and trading platforms, the Bangko Sentral ng Pilipinas (BSP) for virtual asset service providers and even the Anti-Money Laundering Council (AMLC) for risk monitoring. Lim must lead the charge in developing a unified national framework. A joint task force or inter-agency council on digital assets, similar to what Singapore or Japan has done, could streamline compliance and avoid regulatory arbitrage.

• Foster innovation via regulatory sandboxes

Lim’s record shows he understands how to build the financial infrastructure while encouraging innovation. He, therefore, should expand the SEC’s “StratBox” initiative to support crypto startups and blockchain applications in areas like carbon credits, smart contracts and decentralized finance. These sandboxes can serve as test beds for responsible innovation.

• Invest in public education and investor protection

Only 46% of Filipinos understand how crypto works. The SEC should launch aggressive public education campaigns, partnering with schools, banks, fintech platforms and even influencers. Chairman Lim can champion a crypto literacy program similar to what he did for capital markets when he modernized the PSE’s investor education efforts.

• Crack down on scams, while encouraging good actors

Lim should enhance the SEC’s digital intelligence capabilities by investing in tech that can track illegal trading, identify pump-and-dump schemes and shut down unregistered platforms. But equally important, the agency must create incentives for legitimate crypto asset service providers to enter the Philippine market with confidence and clarity.

DIGITAL FUTURE WITH GUARDRAILS
Francis Lim brings to the SEC a rare mix of reformist zeal, legal rigor and industry credibility. In a time when financial innovation is often met with bureaucratic resistance, his leadership offers the best chance for the Philippines to craft a balanced crypto policy — one that protects investors without stifling innovation.

Filipinos have already embraced the future of finance. Now it’s time for the system to catch up.

With Lim at the helm, the Philippines has a chance to become not just a crypto-heavy country but a crypto-smart one. And that could be his most lasting legacy.

Ron F. Jabal, APR, is the CEO of PAGEONE Group and founder of Advocacy Partners Asia. You may correspond through ron.jabal@pageone.ph or rfjabal@gmail.com