The Philippine Stock Exchange (PSE) will change its strategy to make stock investing easier and attract everyday investors following the return of cryptocurrency exchange Binance. PSE President and CEO Ramon S. Monzon stated that the stock market must become more competitive to protect its share of local investment funds, InsiderPH reported.
The announcement follows the Securities and Exchange Commission (SEC) admitting Binance’s local partner, BlockShoals Technologies Inc., into its sandbox testing program.
Competing for Everyday Investors
Monzon explained that the stock bourse faces intense competition from alternative digital platforms.
“Fighting for these retail investors is an ongoing battle for PSE. We have to contend with crypto, we had to contend with FX [foreign exchange] trading before, then we had to contend with online gambling.”
Ramon Monzon, CEO, PSE
He added that these platforms give regular people many other options for their money. “So you have a lot of other avenues where the money of the retail investors are being channeled,” he noted.
Monzon Surprised by Binance Return
Monzon also expressed surprise regarding the regulatory shift that allowed the crypto platform’s return.
“I’m also surprised why they allowed it. I know for a long, long time they have not allowed Binance to operate here.”
Ramon Monzon, CEO, PSE
Monzon noted that he plans to raise the matter in future conversations with SEC Chairperson Francis Lim.
The SEC previously barred Binance from operating in the country in 2024 for lacking local business licenses. Despite that past ban, Monzon acknowledged that the crypto market has established a very large presence.
“…having said that, the crypto market is already there. We’re just not gonna give up. We are continuing to fight for the retail market.”
He also urged regulators to review rules for margin trading, which allows people to buy stocks using borrowed money. “We really have to look at our margin rules because the market is very restrictive,” Monzon said. He noted that current local margin rules are too strict, making the product unavailable to ordinary everyday investors.
Historical Crypto Frameworks
The stock exchange has monitored the digital asset space for several years. In July 2021, Monzon disclosed that the PSE was considering hosting cryptocurrency trading on its own platform to protect consumers. “It’s an asset class that we cannot ignore anymore,” Monzon stated at the time.
Additionally, Binance founder Changpeng Zhao noted in his memoir that he met with representatives from the PSE during a trip to the Philippines in 2022. Zhao also visited Manila recently to meet with finance and SEC officials to support the new sandbox setup.
The current sandbox trial allows BlockShoals, chaired by former PLDT head Al Panlilio, to test an intermediary model. The system requires a 90-day technical setup with a licensed domestic Virtual Asset Service Provider (VASP) before any public onboarding can begin. (Read More: List of Licensed Virtual Asset Service Providers in the Philippines)
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