The Philippines has one of the fastest growing crypto industries in the world that is currently in line for new ICO and cryptocurrency regulations. The Philippines Securities and Exchange Commission (SEC) has approved the draft for new rules that will regulate the crypto and ICO markets.
With so many Filipinos living in other countries who need to transfer money back to relatives, the Philippines has seen massive growth in the popularity of crypto and the SEC is planning to get a firm grip of the market before it gets out of control.
New ICO and cryptocurrency regulations paving the way
The breaking crypto news is that the Philippines SEC has approved the draft of new ICO and cryptocurrency regulations, reported across numerous news outlets. The regulations are mainly focused on dealing with initial coin offerings (ICOs) and are seen as a positive move for the market that will pave the way for legal purchases of crypto across the Philippines.
The Philippines SEC has released the proposed laws that will control the registration of ICO projects, which will then be considered for implementation, said Emilio Aquino, Philippines SEC Chairman.
Implementing crypto regulations in the Philippines
The news first broke in February 2018 that the Philippines SEC were considering ICO and cryptocurrency regulations but needed time to figure out the framework for the laws to govern ICO projects and crypto transactions. This is now coming to fruition as Aquino told reporters in Manila on August 2, when he talked about how the SEC will be regulating the sale of ICO tokens that raise funds for new projects.
The SEC press release on the subject has clarified their position on the new ICO and cryptocurrency regulations: “Under the draft rules, the tokens issued by the startups or companies conducting the ICO may follow the nature of a security under Section 3.1 of the Securities Regulation Code, and therefore, these should be registered with the Commission and necessary disclosures need to be made for the protection of the investing public.”
The major issue of the study of ICO and cryptocurrency regulations by the SEC was that the whitepapers across various ICO projects in the Philippines state that the tokens are not really securities. This means they do not fall under SEC jurisdiction and that by allowing this practice to continue, it is dangerous for investors who have no recourse once an ICO project is deemed a scam. The SEC has said this is why it is important that tokens issued by an ICO in the Philippines will have to be proven by the SEC in the future. “The proposed rules are benchmarked from the rules in various jurisdictions and markets,” the SEC concluded.
Aquino was appointed in June so he could implement a new regulatory environment and crack down on ICO scams that are promising things that are too good to be true. The tightening of ICO and cryptocurrency regulations in the Philippines is being seen as a move in the right direction to protect investors and to allow the legal sale of crypto across the nation.
I am very experienced writer/blogger who has been an active member of the cryptocurrency community for several years. I have experience writing for crypto news sites and proactively been involved in the startup of other ICO and crypto ventures over the course of the past four years.