​Philippines: Fear of Scams Impedes Crypto Adoption, Reveals ConsenSys Study

A recent study conducted by WikiFX has highlighted the primary concern hindering Filipinos from engaging with cryptocurrency: a prevailing fear of scams. The data for this research was collected online by YouGov, an international data and analytics technology organization, and published by the Ethereum company, ConsenSys.

Deterrents to Filipino Engagement in Cryptocurrency

While volatility is typically the main roadblock to crypto engagement globally and in Asia, the case for Filipinos is quite different. Survey results pointed to scam fears as the predominant obstacle to Filipino participation in the crypto ecosystem. According to the findings, 53% of the Filipinos surveyed cited scam fear as the main deterrent from engaging in crypto transactions.

The survey also pointed to market volatility (50%) and lack of foundational knowledge (45%) as substantial obstacles to Filipinos' cryptocurrency adoption.

This research, part of ConsenSys “Global Survey on Crypto and Web3,” was conducted between April 26 and May 18, 2023. It gathered responses from a representative sample of 15,158 individuals aged between 18 and 65 across 15 countries in Africa, the Americas, Europe, and Asia.

The Issue of Crypto Scams in the Philippines

Crypto scams have risen proportionally with the surge in the crypto industry's popularity. As per Solidus' 2022 Rug Pull report, there was a marked increase in scam tokens, with 117,629 tokens created - a 41% increase compared to the previous year's tally of 83,400 scam tokens.

Furthermore, two separate studies in 2021 discovered that 97.7% of tokens launched on the decentralized cryptocurrency exchange Uniswap have the potential to become rug pulls or harmful tokens.

The Philippines has not been immune to such unscrupulous activities. One notable incident was the Surf Shark Society Fiasco in 2022, where the developer vanished with the profits, leaving investors in a lurch. However, the team initiated a refund process for those who still possessed the Surf Shark non-fungible tokens (NFTs) two days after the incident.

The Securities and Exchange Commission (SEC) in the Philippines has been flagging digital asset-related scams. The regulator has issued warnings against several entities, including BitPrime, CryptoGix, Crypto Marketers, Lodicoins, Crypto Finance Hub, and others, exploiting the popularity of virtual assets in the country.

Currently, the Commission is seeking specific regulations to be able to flag entities beyond the charge of violating the Securities Regulation Code.

Pending Crypto Regulations

In a March interview, Commissioner Kelvin Lester Lee revealed that their team has completed drafting a regulatory framework for cryptocurrencies in the country. However, it is still awaiting release.

The SEC also clarified that the classification of cryptocurrencies as securities in the Implementing Rules and Regulations (IRR) for the Financial Products and Services Consumer Protection Act (FCPA) is not yet finalized and is still in the drafting phase.

Initiatives Promoting Crypto Education

Crypto enthusiasts in the Philippines often turn to platforms such as Luis Buenaventuras Facebook page, the country manager for Yield Guild Games (YGG), for reliable information. Other educational initiatives in the crypto space include PDAX, Coins.ph, Maya, SparkLearn EdTech, Metacrafters, Bitskwela, Web3 Metaversity, and more.

Binance Academy, the educational platform for crypto and blockchain of Binance, has also been active in the Philippines. The academy recently completed the first leg of the Southeast Asia University Tour, visiting five educational institutions in the Philippines.

With this growing need for crypto education, these initiatives are playing a critical role in providing Filipinos with credible and comprehensive information about crypto trading and investment, in turn helping to alleviate fears around scams and misinformation.

Staying Updated with WikiFX

Keeping updated on the latest news regarding scams and cryptocurrency regulation can be an effective way of avoiding potential pitfalls. The WikiFX App provides users with current news updates. It's readily available for download on your smartphone via this link: https://www.wikifx.com/en/download.html.

In conclusion, while scams pose a significant barrier to cryptocurrency adoption among Filipinos, initiatives such as educational platforms and more defined regulation may play a key role in alleviating these fears, and in turn, promote a healthier, more inclusive crypto space.