The commissioner of the Philippines SEC recently confirmed that they were working on regulations for ICOs and cryptocurrency trading. These new rules will create guidelines on the trading and issuance of cryptocurrencies. The Commissioner, Emilion Aquino, expects that the registration will be finalized by the end of the year. He added that the current regulation was still in the drafting stage.
We need to act because initial coin offerings (ICOs) are sprouting especially in 2017. We want to come up with our own set of regulations. You have to be extra careful how investors in this new space are protected.
What will Be Covered?
The move is going to introduce new regulations that will cover the cybersecurity aspects of cryptocoin markets. Besides this, they will cover the eligibility of those who issue ICOs, as well as accountability for the technology that will be used, and those who operate it. Additionally, the financial literacy of the investors will be covered.
However, most importantly, the SEC chief says the regulation is intended to ensure investors are safe in terms of fraud. He noted that there had been many instances in which promoters of ICOs would vanish after collecting funds from investors. He said that he intended to ensure that it did not happen in the Philippines.
Mr. Aquino noted that the SEC had yet to issue licenses to any ICO operators. He added that they were in the process of investigating unlicensed sellers operating in the country. They recently issued a cease-and-desist order against an ICO that was operating in the country without approval from the authorities.
Mr. Aquino said that the commission had always been of the mindset to foster innovation in the financial sector. However, he said that all operators needed, was to be registered in the country with the SEC. The SEC was going to be accommodating of cryptocurrencies in the country.
The Philippines Is Working with Stakeholders to Create the Rules
The Filipino authorities have been pushing for unified rules on cryptocoins for a while now. The SEC is currently working with Bangko Sentral ng Pilipinas (BSP) to ensure the creation of rules to govern the crypto-coin market in the country.
According to recent reports, the authorities are mulling allowing ICOs to be offered as securities, which is similar to measures taken by authorities in Malaysia, and Hong Kong amongst others. This is quite different from what authorities in other places like China are doing. In fact, cryptocoin trading in China has almost been eradicated. This is also the case for South Korea, where the authorities are planning tough measures.
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