The Securities and Exchange Commission has released an updated draft of its Crypto-Asset Service Provider (CASP) Rules, which includes an expanded regulatory oversight of how crypto-assets and related services are promoted in the country.
Section 7 of the May 30, 2025, draft expands the definition of “marketing” from the December 2024 Draft to include nearly all forms of public communication, including events, educational content, and indirect endorsements.
Key details
- Marketing now covers all public-facing communication, including social media, educational materials, events, and even airdrops. (Section 7.3)
- CASPs must register and report all third-party promoters to the SEC. (Section 7.6)
- Content creators and influencers must register as financial advisers if they promote crypto-assets without naming a CASP. (Section 7.3.6.3)
- CASPs are liable for the actions of their marketing agents and service providers. (Section 7.5)
The SEC emphasizes that any act meant to induce, endorse, or solicit crypto-related activity may be classified as marketing, regardless of medium or method.
Marketing Activities
The rule lists the following as qualifying activities:
- Promotional content in any form (Section 7.3.1)
- Includes articles, posts, or messages that are promotional, influenced, or sponsored.
- Online content and social media activity (Section 7.3.2)
- Covers blogs, social media posts, comments, banners, billboards, videos, podcasts, and livestreams.
- Crypto Events in the Philippines (Section 7.3.3)
- Any event that could facilitate crypto sales or incentivize usage, including meetups, conferences, and seminars, falls under marketing.
- Advertisements and branded materials (Section 7.3.4)
- Encompasses traditional ads, sponsored write-ups, paid media, earned media, and crypto-branded merchandise.
- Crypto “airdrops” (Section 7.3.5)
- Giving away tokens is marketing unless proven entirely free and without any exchange of value or data.
Educational content
- Tutorials, articles, presentations, and other learning materials are also covered unless:
- The content is created in good faith.
- The creator receives no promotional value, or user data.
- Any compensation is limited to reasonable educator fees:
“It shall not be considered made in good faith and purely for educational purposes if the maker or publisher of the educational content receives any value, data, or non-monetary benefits.”
Securities and Exchange Commission
If educational content promotes a specific CASP, the creator is classified as that CASP’s agent. If no CASP is named, the content creator must register as a financial adviser:
“If the educational content does not make mention of any CASP, then the maker shall register as a financial adviser, as the case may be.”
Securities and Exchange Commission
Differences vs Dec. 2024 Draft Rules
The May 2025 draft goes further than the December 2024 version by adding clarity to exemptions and specifying the consequences for noncompliance.
- While the earlier draft flagged various types of promotional content, the revised version introduces a detailed breakdown, tighter liability, and a higher threshold for exemption of educational materials.
- All promotional material must also meet the SEC’s standards for clarity and risk disclosure.
“Marketing must be in plain, clear, and concise language that accurately and sufficiently discloses the product or service provided as well as the associated risks in a manner that is not misleading in both substance and presentation.”
Securities and Exchange Commission
CASPs must submit a detailed list of third-party marketers to the SEC, including methods of promotion and verified contact details. They are held jointly accountable for violations committed by these third parties and may face penalties, license suspensions, or investigations.
The updated draft rules remain subject to further review and public consultation.
This article is published on BitPinas: PH SEC Revised Draft Rules Targets Crypto “Educational” Events, Ads, Airdrop, & Content
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