Philippines introduced new regulations for digital asset tokens
A new set of laws governing the cryptocurrency regulation and particularly the Digital Asset Token Offering (DATO) has been introduced in Philippines. The new legislation was released by the country’s Cagayan Economic Zone Authority (CEZA), and is mainly designated to investors’ protection, as well as regulating such matters as the acquisition of crypto assets, including utility and security tokens. Based on this current regulation, the CEZA becomes the leading regulator of the industry. Following the Japan’s footsteps, the Asia Blockchain and Crypto Association (ABACA) was designed to act as the self-regulatory body.
According to the new regulations, all DATOs should have proper offering documents that include all details on the issuers, as well as the project. Additionally, there must be accompanying advice and certification of experts. Plus, tokens have to be listed on the licensed Offshore Virtual Currency Exchange (OVCE).
The new rules are divided into tiers, with tier one covering investments and assets not exceeding $5 million in digital tokens, tier two covering the $6-$10 million range, with tier three including all investments and assets exceeding $10 million.
Notably, the release does not mention anything about the initial coin offering (ICO). With the country’s financial watchdog working on them for a while, a lot of crypto players anticipated their release within the scope of the new legislation. Despite the former repeated promises to release the final ICO regulation, in early January Philippines Securities and Exchange Commission (PSEC) has stated that they’re not ready to issue the final ICO regulation, citing a multitude of requests received by different industry stakeholders, which have delayed the process due to the additional time needed to review. After the initial draft release, the Filipino government has stayed mostly quest on the ICOs matter.