The Philippines recently announced new regulations to govern crypto assets for the country. According to the Cagayan Economic Zone Authority (Ceza) , a government regulator, the new regulations cover areas of cryptocurrencies, including utility and security tokens.
According to Ceza, their aim is to effectively regulate the crypto industry and safeguarding investor interests and promoting innovation
The new framework aims to protect investor interests as well as to promote innovation :
According to Ceza, their aim is to effectively regulate the crypto industry and safeguarding investor interests and promoting innovation.
Similar to the Digital Asset Token Offering (Dato) regulations, the guidelines require the creators of all crypto assets, during initial coin offerings, to provide clear offer documents carrying relevant details of the issuer, project, and accompanying advice and certification of experts, according to a report by Vietnamese English daily Vietnam News.
The process and rules formed :
The tokens bought should be listed on the licensed Offshore Virtual Currency Exchange (OVCE), a special exchange set up for this purpose by the government. Participants are required to have confirmed arrangements with Ceza-accredited wallet providers and custodians
The rules have been broken down into three levels of digital asset offerings. The first level, tier one, covering assets and investments not exceeding $5 million with payment made in digital tokens. Digital assets covered under the second level, tier two, range between investments worth $6M to $10M, while the third level, tier three covers investments exceeding $10 million.
Self-Regulatory Body to Enforce Compliance :
The government-owned regulator will be working in partnership with the Asia Blockchain and Cryptocurrency Association (Abaca), a so-called self-regulatory industry representative body, whose work will include executing and enforcing the regulations. Abaca will also administer a code of conduct among its members, reporting to Ceza any breach or violation relating to the offshore virtual currency exchange regulations.
Ceza has till now given 19 companies the green light to operate cryptocurrency exchanges as it moves to develop a financial technology economic zone in the country. Indicating that the new rules will also encourage innovators to use new technologies responsibly. Ceza emphasized that collaboration with local fintech firms and industry players will help the government to be up to date with innovations on emerging markets.
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