New Regulatory Framework for Digital Asset Token Offering Introduced in Philippines

The new regulations released by the country’s Cagayan Economic Zone Authority (CEZA) are reportedly designed to regulate the cryptocurrency industry and protect investors, affecting such issues as the acquisition of crypto assets, including utility and security tokens. The CEZA thus becomes the main regulator, while the ABACA has been designated as a self-regulatory organization (SRO) to enforce the new framework.The rules are divided into tiers, wherein tier one involves investments and assets not exceeding $5 million made in digital tokens; tier two covers the $6–$10 million range, and tier three pertains to investments and assets exceeding $10 million.The PSEC initially issued a set of draft rules for regulating ICOs for public review in August, 2018. The agency then stipulated that any company registered in the Philippines looking to run an ICO, or any ICO selling tokens to Filipinos, must submit an “initial assessment request” to the Commission to determine whether or not their token is a security.However, in the beginning of 2019, the PSEC claimed it is not ready to issue final ICO regulation, attributing the delay of the release to a request by different stakeholders for further time to look at the draft ICO rules.

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