Philippines SEC issues draft of offering rules
The Philippines Securities and Exchange Commission (SEC) has released a draft of its proposed regulations for initial coin offerings (ICOs) and has invited the public to provide feedback on these proposed rules.
In the regulator’s Memorandum Circular, the SEC mandates that any company seeking to launch an ICO, or any ICO selling their tokens to Filipinos, must first submit an application called the Initial Assessment Request to the SEC.
The SEC will aim to review the request within 20 days – although extendable up to 40 days – and issue a written report on whether or not a given ICO token is considered a security.
Among the other proposed regulations is that ICOs should submit their applications at least 90 days before they plan to launch their pre-sale period. In addition, ICOs may be exempted from registration with the SEC where they plan to distribute tokens among no more than 20 individuals or a limited number of institutional investors.
Four weeks for feedback
The Philippines SEC specifies that they are “inviting banks, investment houses, the investing public and other interested parties” to submit feedback on the proposed rules no later than 31 August. The proposed regulatory framework aims to combat fraudulent ICO projects and protect investors from scams.
The SEC has regularly suggested regulating crypto assets under the country’s securities laws since it first advocated the policy late last year.
The Philippines government has taken a positive stance on the crypto space, and in April this year established a blockchain and fintech hub in the Cagayan Economic Zone Authority (CEZA).
Aiming to create an Asian “Silicon Valley,” the authorities authorised 10 blockchain and crypto firms to operate in the zone. Last month CEZA granted provisional licenses to three cryptocurrency exchanges in the zone, expecting to attract $3m in investments following the issuance.