A series of draft rules have been issued by the Securities and Exchange Commission (SEC) of Philippines. These rules are put in place as a measure to regulate the Initial Coin Offerings (ICO) for public review.
The official Memorandum Circular released by the SEC mentions that any company that is registered in the Philippines who are looking to run an ICO or selling ICO backed tokens to the Filipino population must submit an “Initial Assessment Request” to determine whether the token can be considered a security or not.
The initial assessment request should be provided at least 90 days prior to the start of the initial pre-sale. The SEC authorities will review the request within 20 to 40 days and provide a written report on the ICO.
The ICO may be exempted from this assessment in case the token distribution features 20 or fewer individuals. This also holds true for a limited number of institutional investors.
The SEC further said that it is open to feedback from banks, investment houses, public investors and other interested parties. The deadline for feedback submission is 31 August 2018.
This decision has been taken to weed out the fraudulent ICO projects. This will help protect the country’s population from ICO scams. Notable, the SEC had suggested regulation of crypto assets multiple times under the country’s security laws since late 2017.
Despite the beefed up security, the Philippines government has shown support towards the crypto space. In fact, the country recently established Cagayan Economic Zone Authority (CEZA), a blockchain and fintech hub in April 2018.
Back in July, The CEZA granted temporary licenses to three crypto exchanges, attracting $3 million in investments.
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