Philippines' Cagayan Economic Zone Authority Introduce New Cryptocurrency Regulations

10:51 PM UTC+8, 06 Feb 2019
Philippines' Cagayan Economic Zone Authority Introduce New Cryptocurrency Regulations

Philippines' Cagayan Economic Zone Authority Introduce New Cryptocurrency Regulations

Published 10:51 PM UTC+8, 06 Feb 2019

Recently, in the early hours of February 4th, the Philippines brought about some new rules that will be governing DATO. DATO is an abbreviation for Digital Asset Token Offering.

This is the news that was put listed by the Asia Blockchain and Crypto Association. They are also known as ABACA.

Everything You Need To Know About The Crypto Regulation

This new regulation by Philippines' Cagayan Economic Zone Authority; prominently called CEZA has been drafted for diverse reasons. It will regulate the crypto industry and secure investors.

This regulation will affect problems such as crypto asset acquisition, utility token, and security tokens. The utility tokens offer its holders easy future access to either products or services provided through the company.

For the security tokens, they are supported by real time assets like equity and shares of a company. They are utilized in paying dividends, interests or investing in some other tokens.

This implies that CEZA will be transformed as the primary regulator. For ABACA, it has been nominated as the SRO.

This means it is a Self-Regulatory Organization. Its job consists of enforcing this new framework. Due to this release, every DATOs are expected to have adequate offering records.

This record will have in-depth details of both the issue and the project. They should also have accompanied advice and expert certifications. This SRO model will not only promote but also secure every interest of crypto investors.

Also, the tokens will have to be filed on the licensed OVCE. The OVCE is none other than the Offshore Virtual Currency Exchange. The set rules are actually split into three tiers. They include;

Tier One

This tier comprises of assets and investments that do not exceed $5 million made in the computerized tokens.

Tier Two

This tier basically covers a $6million to $10million range.

Tier Three

It comprises of investments and assets that exceed $10 million.

The various stakeholders are expected to have an affirmed arrangement. This arrangement will be executed with authorized wallet providers and the custodians. CEZA has also added to the set of rules.

CEZA stated that the partnership with financial technology industries and some of the establishment players would aid the government. They will help them attain in-depth knowledge and be updated with technology on the upcoming markets.

The set rules will stay rigid as it assesses not only the conducts but also the integrity of the companies interested in debuting DATOs. It is worth to note that CEZA has accepted and even circulated temporary principal OVCE. However, this release made does not make mention of ICOs.

ICO is an abbreviation for Initial Coin Offering. As mentioned above, the regulation does not mention anything on ICO.

PSEC, an abbreviation for Philippines Security and Exchange Commission has been talking about ICO for some time. PSEC also released some draft rules for governing ICOs back in August 2018.

According to the agency, companies registered in the country that are making plans to operate an ICO must, first of all, submit an initial assessment request.

It does not matter if their token will be a security token or not. The addressing request must be submitted to the commission.

Wrapping It Up

It should be noted that CEZA has issued the offshore virtual currency exchange to a total number of nineteen companies. And, these companies are also connected to the Blockchain industry and its general ecosystem.

Updated 08:41 PM UTC+8, 07 Feb 2019

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