The Philippines has rolled out new regulations for the cryptocurrency sector in the country, according to the Cagayan Economic Zone Authority (Ceza). The new regulation covers the purchase of cryptocurrencies, including security and utility tokens. Ceza explained that the main aim of the regulation is to protect investors’ interests while promoting innovation in the sector.
New crypto regulation to protect investors
Two days ago, Vietnamese News reported that the new regulation is dubbed the Digital Asset Token Offering (Dato). The new regulation requires the creators of digital currencies and ICOs to provide clear offer documents. The documents should carry relevant details of the issuer, project, as well as advice and recommendations from industry experts.
A special exchange, Offshore Virtual Currency Exchange (OVCE) was set up to list the tokens, and issuers are expected to list their tokens on the platform. Ceza added that participants are required to have an arrangement with accredited wallet providers and custodians in the Philippines.
Ceza broke down the rules into three levels of digital asset offerings. The first level is for investment below 5 million USD, with payment made in cryptocurrencies. The second level covers investments between 6 to 10 million USD, while the third level is for investments over 10 million USD.
Raul Lambino, chief executive officer of Ceza, commented that the Dato framework is designed to protect investors and promote innovation in the cryptocurrency space. “We (Ceza) aim to provide a clear set of rules and guidelines that will boost innovation while also ensuring proper compliance by actors in the ecosystem. We hope that these set of regulatory innovations will promote blockchain and crypto adoption by institutional investors and the financial system,” he added.
Ceza to partner with a self-regulatory body to enforce compliance
Ceza revealed that it would be working with the Asia Blockchain and Cryptocurrency Association (Abaca) to enforce compliance of the new regulations. Abaca, which is a self-regulatory body in the region, will implement a code of conduct among its members, reporting to Ceza any company breaching or violating cryptocurrency regulations.
Lambino stated that the safeguards built into Ceza’s rules will lead to greater protection and transparency for investors. “The involvement of DA agents and experts bring in competent and neutral third parties into the process to help ensure issuers are truthful and accurate,” he added.
Ceza pointed out that the new regulations will also encourage innovators to use new technologies responsibly. To enable this, the regulatory body will collaborate with local fintech firms to help the government keep up to the date with innovations in the crypto space and other emerging markets.
Juanita Cueto, the chairperson of Abaca, mentioned: “The SRO model allows industry players to police their own ranks, while also promoting and protecting the interests of cryptocurrency investors. The rules will remain stringent in assessing the ethics and integrity of companies eyeing to launch Digital Asset Token Offerings.”
Across the world, regulatory bodies are working to regulate the cryptocurrency sector and provide adequate rules to protect investors and boost innovation. Cryptocurrency’s strongest characteristics have been privacy and autonomy, but regulation is needed in the space to protect investors from scams.