برچسب: Capital

  • CMEPA: How the New Capital Markets Law Will Lower Taxes and Boost Investments

    CMEPA: How the New Capital Markets Law Will Lower Taxes and Boost Investments


    Disclaimer: This article is for informational purposes only and does not constitute financial advice. BitPinas has no commercial relationship with any mentioned entity unless otherwise stated.

    President Ferdinand Marcos Jr. has signed into law Republic Act No. 12214, or the Capital Markets Efficiency Promotion Act (CMEPA), a landmark measure aimed at reducing friction costs, streamlining tax structures, and strengthening investor confidence in the Philippine capital markets.

    Photo for the Article - CMEPA: How the New Capital Markets Law Will Lower Taxes and Boost Investments
    President Ferdinand Marcos Jr. delivering his speech after signing RA 12214.
    Photo from Presidential Communications Office

    What is Capital Markets Efficiency Promotion Act?

    Signed on May 29, 2025, and set to take effect on July 1, 2025, the law is seen as a direct response to the country’s long-standing issues of low market participation and complex tax regimes. 

    According to the official document, CMEPA is a law that aims to modernize and simplify the Philippine tax system to enhance capital market development. 

    It does this by standardizing the taxation of passive income, reducing transaction costs such as the stock transaction tax and documentary stamp tax, and aligning tax treatment with regional norms. The law supports financial inclusion and economic growth by making investing more accessible and attractive.

    Lawyer’s Review on CMEPA

    Advertisement

    PDAX Banner

    An analysis written by Atty. Abimelech Rigodon, a tax and capital markets lawyer and an associate at the Siguion Reyna Montecillo and Ongsiako Law Offices, provided insight into how the CMEPA is expected to impact investors, institutions, and the broader financial system.

    According to Rigodon, there are currently only 10% of Filipino adults that hold investment products, partly due to high friction costs and a confusing tax system. 

    “While high trading volumes are generally attractive to potential investors, their appeal diminishes when friction costs are high. The existing tax structure in the Philippines poses a considerable obstacle to the development of its capital markets. For instance, the stock transaction tax (STT) is imposed at 0.6% of the gross selling price—significantly higher than the 0.1% levied in Indonesia and Malaysia, and the nil rate in Singapore and Vietnam.”

    Atty. Abimelech Rigodon, Tax and Capital Markets Lawyer

    Conversely, he stated that CMEPA addresses these barriers by aligning passive income tax rates with regional standards, simplifying tax structures, and lowering transaction costs, with the goal of boosting domestic investor confidence and enhancing the competitiveness of the Philippine capital market.

    Key Provisions of CMEPA

    Simplified Interest Income Taxation

    All interest income from bank deposits, trust funds, and similar instruments will now be subject to a uniform 20% final tax, replacing a fragmented system that ranged from full exemptions to various preferential rates.

    Stock Transaction Tax (STT) Reduction

    To promote trading activity, the STT on listed shares has been cut from 0.6% to 0.1%, applicable to both domestic and foreign stock exchanges. This places the Philippines on par with countries like Indonesia and Malaysia and closer to Singapore and Vietnam, which does not impose STT.

    Capital Gains Tax Alignment:

    The law imposes a 15% final capital gains tax on the sale of both domestic and foreign unlisted shares. Previously, foreign shares were subject to higher rates depending on the taxpayer’s classification, reaching up to 35% for individuals.

    Lowered Documentary Stamp Tax (DST)

    CMEPA reduces DST on the original issuance of shares from 1% to 0.75%, and exempts mutual fund shares and UITF units from DST entirely—moves expected to encourage equity financing and small-investor participation in pooled investment vehicles.

    PERA Incentives

    Employers contributing to employees’ Personal Equity and Retirement Account (PERA) can claim a 50% additional deduction on top of the allowed contribution, capped at ₱100,000 annually. The measure is seen as a bid to stimulate long-term retirement savings.

    Recto Backs Capital Market Law

    In a media release from Department of Finance (DOF), Secretary Ralph Recto welcomed the enactment of CMEPA, calling it a landmark reform that will make investing more accessible for ordinary Filipinos and support inclusive economic growth.

    Photo for the Article - CMEPA: How the New Capital Markets Law Will Lower Taxes and Boost Investments
    Finance Secretary Ralph Recto.
    Photo from Philippine News Agency

    According to the finance department, CMEPA is expected to generate over ₱25 billion in revenue from 2025 to 2030 and help reduce the country’s fiscal deficit to 3.8% of GDP by 2028 under the Medium-Term Fiscal Framework.

    “This is a major victory for the country, as inclusive access to investment opportunities and a broader, deeper financial system are vital pillars of long-term, inclusive growth. Bukod dito, ang buwis na malilikom ay gagamitin upang pondohan ang ating mga priority projects sa imprastraktura, kalusugan, edukasyon, agrikultura, at iba pang pampublikong serbisyo.”

    Ralph Recto, Secretary, Department of Finance

    In addition, Special Assistant to the President for Investment and Economic Affairs Frederick Go said the new law signals to global investors that the Philippines is serious about building deeper and more efficient capital markets.

    “The passage of CMEPA sends a clear message to both domestic and global investors that the Philippines is committed to building deeper, more efficient capital markets. This reform is expected to boost and strengthen liquidity, trading activity, capital formation, and contribute to broader economic growth.” 

    Frederick Go, Special Assistant to the President for Investment and Economic Affairs 

    This article is published on BitPinas: CMEPA: How the New Capital Markets Law Will Lower Taxes and Boost Investments

    What else is happening in Crypto Philippines and beyond?



    Source link

  • HashKey Capital Launches Asia’s First XRP Tracker Fund

    HashKey Capital Launches Asia’s First XRP Tracker Fund


    • HashKey Capital launches Asia’s first XRP fund.
    • XRP Tracker Fund strengthens Asia’s crypto leadership.

    HashKey Capital has officially launched the HashKey XRP Tracker Fund, the first investment fund in Asia that focuses solely on XRP. The new development takes digital assets in the region to a new level of accessible investment opportunities with proper regulations.

    HashKey Strengthens Web3-TradiFi Bridge with XRP Fund

    The fund has been established specifically for experienced investors. Professional investors can access XRP through this fund despite not needing to handle cryptocurrency management tasks themselves. The tracking fund monitors XRP performance as it ranks among the three top cryptocurrencies behind Bitcoin and Ethereum globally.

    The main function of XRP becomes evident through its established role in international money transfers across borders. Financial institutions, together with banking organizations, adopt XRP as their border transaction solution, which provides fast transfers with substantially reduced expense. The fund enables HashKey Capital to fulfill its objective as a Web3 traditional finance (TradiFi) connector.

    The XRP proves itself to be one of the leading innovative cryptocurrencies in global markets today, based on the assessment of Vivien Wong, who serves as Partner of Liquid Funds at HashKey Capital. XRP has become the currency of choice for global enterprises to execute transactions and tokenize assets, along with value storage operations. The fund creates simpler and more efficient ways for people to invest in XRP.

    Investors who subscribe to or redeem shares through the XRP Tracker Fund can do so during each monthly period. The fund accepts both cash investments and investments through in-kind subscription methods. CF Benchmarks serves as the benchmarking company for the fund while having previously launched crypto ETFs in the United States and Asia-Pacific markets.

    HashKey Capital has recently established its third fund within this particular tracker series. The company had established Bitcoin (3008.HK) ETFs and Ethereum (3009.HK) ETFs as partnerships with Bosera previously.

    This XRP fund starts a new strategic partnership between Ripple and HashKey Capital while serving as their first joint venture. Through investment in this fund, Ripple confirms its commitment to supporting the alliance between the two companies.

    XRP Fund Signals Asia’s Rise in Crypto Leadership

    This partnership will bring together HashKey Capital’s expertise in asset management with Ripple’s deep knowledge of blockchain technology and payments. Wong predicted that this partnership would establish numerous prospects between DeFi solutions and enterprise blockchain deployment.

    Wong discussed the upcoming plans for tokenizing a money market fund MMF on the XRP Ledger system. The partners demonstrate their commitment to extend their blockchain-based product line beyond this particular fund.

    This financial fund represents for Ripple a crucial advancement toward standardized crypto investment in the Asian markets. According to Fiona Murray, who leads Ripple as its APAC Managing Director, “Institutional investors need regulated crypto products.” The newly established fund serves exactly this purpose. Asia is strengthening its position in crypto and blockchain technology by ensuring this development.

    The HashKey XRP Tracker Fund marks a key achievement that fundamentally progresses Asian digital asset trading. . As digital assets continue to grow in popularity, such innovations are likely to shape the future of finance in Asia and beyond.



    Source link

  • Transcript: Donald Lim Reaffirms Push to Make Philippines the Blockchain Capital of Asia at PBW 2025 Press Launch

    Transcript: Donald Lim Reaffirms Push to Make Philippines the Blockchain Capital of Asia at PBW 2025 Press Launch


    Donald Lim, COO of Dito CME and president of the Blockchain Council of the Philippines, emphasized the growing impact of blockchain in the country and the need to simplify it during his keynote at the PBW 2025 press launch.

    • The speech happened at the press launch of the upcoming Philippine Blockchain Week 2025 in Makati City last March 31, 2025.

    In Focus: The Philippine Blockchain Week 2025, with a focus on blockchain, AI, and cybersecurity, was formally announced to happen from June 10-14 at the SMX Convention Center Manila.

    • Recent news: At the same event, actor and restaurateur Marvin Agustin also introduced FishBlock, a block-shaped fish ball with an NFT on Bayanichain,. 

    The following excerpt from the speech highlighted the Philippines’ growing blockchain adoption, government collaboration and the need to simplify the technology for broader acceptance. Lim also reaffirmed PBW’s role in making the country Asia’s blockchain capital through collective efforts.

    Donald Lim Keynote Speech at the PBW 2025 Press Launch

    Donald Lim, President of the Blockchain Council of the Philippines: To our partners, all of you who trusted and worked with us since day one. Here we go again—not the geeks in the room, but the geeks in the country.

    When we started talking about blockchain, people would always ask, what the F are you doing and what the F is that word, right? And I always say, when you do Philippine Blockchain Week, it’s always no different from a Philippine nuclear physicist’s week or whatever, because the word “blockchain” alone is such a big word.

    Advertisement

    PDAX Banner

    But then we begin to realize how much blockchain, if done and implemented right, has a big positive effect on our country. We’ve seen a lot of inroads with our Philippine government and even with the Blockchain Council. My co-trustees, Chezka [Gonzales], we’ve been doing a lot of work—forums with the SEC, [and] with the Department of Budget and Management. We’re seeing many government offices trying—bits and pieces, efforts—working on blockchain.

    We’re also seeing, of course, the Philippines—we take pride in being one of the biggest users of crypto trading and also gaming. And I think it’s only right that we continue pushing forward—all of us here, who are believers in web3 tech—to really, what I call, evangelize our country and also the rest of Asia. That is the kajos that we want to take upon ourselves. And when we were planning for the Philippine Blockchain Week, Janelle [Barreto] will explain later on why we had this theme. But we have to bring blockchain to something that is easy to understand for everyone. That is also the reason why we brought in our partners. Because if we all keep on talking about blockchain, maybe everyone in this room—we all understand it and how it works—but everyone outside, their life goes on with or without.

    But we have to tell them that there is something better, that there is a tech that is better—the principle of decentralization, the principle of us putting the power into our hands and using a tech that is extremely powerful.

    Photo for the Article - Transcript: Donald Lim Reaffirms Push to Make Philippines the Blockchain Capital of Asia at PBW 2025 Press Launch

    Again, all of us have to work together. Blockchain can only succeed if the government, the public sector, the private sector and the users all work together. And it’s not going to be easy, like any new technology. I still remember—of course some of you here are very young—but when the internet came, it was seen as evil also, and that was in the year 1998, 1999, 2000. But right now, with AI coming in, which would make the adoption of blockchain easier, faster—we’re talking about it coming into play already. We’re going to see how blockchain will move—and then going to move leaps and bounds in terms of adoption. Hopefully, the Philippine Blockchain Week is all about having this open discussion again.

    Some countries do not like the word “blockchain” and “crypto.” Some are very open, and I think we’re very lucky that we’re in this country to be supportive of that. And, as you all know, our founding board of directors, Henry Aguda, is now secretary of the ICT also, so I’m sure you’re excited. Of course, he will be part of us.

    We always like to tell people this anecdote: When we have a lot of our foreign participants who come in, they’re always astounded by the support of the government and support of the private sector—that those who are in web1 and traditional sectors are coming into the Philippine Blockchain Week. I think, again, they’re very surprised, right? Why would the government support something like this?

    The Blockchain Council—again, we’re also there. We’re speaking to Congress, we’re helping them with the blockchain; we’re with the SEC, we’re helping them with the VASP [virtual asset service provider] and the CASP [crypto-asset service provider] license, among many others. Again, bits and pieces—but imagine a big puzzle worth filling each piece, one at a time. And with all of you here, with the partners here and with our friends in the media, I hope that we make this our platform. All of you are invited. We make this our platform to again really position the Philippines as the blockchain capital of Asia. I’m really confident that we can make that happen, because all of the stakeholders are all working together with that same belief. And again, it’s all of us working together—the same principle as what web3 is.

    So again, I hope you have a good afternoon, and I’ll see you on PBW.


    This article is published on BitPinas: Donald Lim Keynote Speech at the PBW 2025 Press Launch

    What else is happening in Crypto Philippines and beyond?



    Source link

  • SEC New Draft Crypto Rules Adds ₱100M Capital Requirement, Registration Exemptions

    SEC New Draft Crypto Rules Adds ₱100M Capital Requirement, Registration Exemptions


    The Philippine Securities and Exchange Commission (SEC) has removed broad provisions and introduced stricter operational requirements in the newly revised draft rules for Crypto-Asset Service Providers (CASPs).

    The proposed issuance, now titled “SEC Guidelines on the Operations of Crypto-Assets Service Providers,” removes or revises several high-level policy sections from the original “SEC Rules on Crypto-Assets Service Providers,” in favor of highly detailed technical and compliance guidelines.

    What’s New

    • Minimum Capital Requirement: CASPs must now have at least ₱100 million in paid-up capital, a figure not specified in the older draft.
    • CASP Form 1: Applications must now include over 15 specific documents, including risk matrices, IT architecture descriptions, and board resolutions.
    • Operational Frameworks: New detailed requirements include client support systems, cyber resilience, local data centers, and independent audits.
    • Record-Keeping: Monthly, quarterly, and annual reports must be submitted, covering user activity, trading records, and financials.
    • Clear Limitations: The new draft prohibits leverage trading, unauthorized crypto derivatives, and proprietary trading of customer funds (unless approved by the SEC).
    • Exemptions: Under the new draft, the SEC may grant an exemption from registration if the exemption is consistent with public interest and investor protection. This is a new regulatory flexibility.

    What Was Revised

    • Marketing and Promotions Rules: No more explicit rules on CASP advertising or social media promotions.
    • Insider Trading and Market Manipulation Provisions: These were fully detailed in the older version but are only briefly mentioned or condensed now.
    • Public Offering and ICO Guidelines: Disclosure document rules and offering statements are no longer part of the guidelines.
    • Enforcement Tools: Provisions on civil actions, disgorgement funds, and coordination with other agencies were removed.

    Key Focus Areas in New Draft Rules

    Area Summary
    Registration Must submit detailed compliance documentation and meet capital standards
    Trading and Listing Strict vetting of crypto-assets before admission to platform
    Risk Management Required annual audits, vulnerability tests, and IT documentation
    Customer Protection Segregation of client assets and mandatory suitability assessment
    Penalties Tiered fines based on violation count, with possible registration cancellation

    Registration, Penalty, and Fees

    Photo for the Article - SEC New Draft Crypto Rules Adds ₱100M Capital Requirement, Registration Exemptions

    Public Feedback Deadline

    Stakeholders may submit their comments on the draft until April 26, 2025 to fintech@sec.gov.ph or deliver hard copies to the SEC’s PhiliFintech Innovation Office in Makati.

    Full Document

    This article is published on BitPinas: SEC New Draft Crypto Rules Adds ₱100M Capital Requirement, Registration Exemptions

    What else is happening in Crypto Philippines and beyond?



    Source link