The Philippines’ Securities and Exchange Commission (PSEC) has delayed the issuance of finalized regulations for initial coin offering (ICOs). The regulations were expected to release by the end of 2018.
No updated deadlines have been revealed. According to the local news outlet The Philippines Star, however, the delay came while “different shareholders” have asked the regulator for additional time to research the regulations before they conclude.
As of now, a draft of the regulations states that the ICO projects must register with the Philippines SEC at least 45 days prior to its pre-sale token launch, along with a request for assessment to the regulator, proposing the token sale.
The initial assessment must include various documents such as “police and National Bureau of Investigation of all members of the company or start-up doing the ICO.” In addition, the curriculum vitae, descriptions of the problems to be dealt with by the company, a whitepaper with the risk of offering, advantages, and disadvantages, and bankruptcy records.
The draft instructs that the token issuers “may follow the nature of a security under Section .1 of the Securities Regulation Code.” As it reads, “Therefore, these should be registered with the Commission, and necessary disclosures need to be made for the protection of the investing public.”
The main intention behind PSEC not banning ICOs is because the commission believes that the technology is promising with potential benefits. As per the SEC’s chairperson, Emil Aquílinio thinks that the technology “has its benefits.”
In August 2018, the country released a draft of their ICO regulations. However, no ubiquitous actions to regulate the nascent industry have been made. Whereas, in July of last year the Central bank of the Philippines authorized two cryptocurrency exchanges to operate in the country, giving them the ability to convert pesos into virtual currencies. This increased the number of approved exchange to five at the time. Later, the PSEC issued a warning that cloud mining contracts must be registered as securities.