Asia Blockchain and Crypto Association (ABACA) recently announced in a press release the introduction of a new regulatory framework to supervise Digital Asset Token Offerings in Philippines.
We have to mention that in this story we have a few regulatory bodies in the Philippines that collaborate to produce and implement the regulations affecting the cryptocurrency industry.
The Cagayan Economic Zone Authority (CEZA) released the latest regulations in order to offer a predictable framework for both customers and investors that are interested in purchasing digital assets which include both utility and security tokens. Asia Blockchain and Crypto Association (ABACA) is therefore acting as a regulatory organization that holds the business of enforcing the new crypto laws.
Raul Lambino, CEZA administrator and CEO, declared soon after the introduction of the new regulations: “It is our goal to provide a clear set of rules and guidelines that will foster innovation yet ensure proper compliance by actors in the ecosystem. It is our hope that these set of regulatory innovations will take the digital asset sector one step closer to adoption and acceptance by institutions and the traditional financial system.”
According to the new laws, Digital Asset Token Offerings in Philippines need to present detailed information on the issuer and the project itself, while gathering a list of certifications from experts in the field. Also, tokens have to be listed on the Offshore Virtual Currency Exchange (OVCE).
In addition, the regulations specify three tiers: tier 1 covers investment and assets not exceeding $5 million made in digital tokens, tier 2 covers investment and assets ranging from $6 to $10 million, tier 3 is for those that exceed $10 million.
For investors and interested parties that look for ICO regulations, we have to say that the famous ICOs are not part of the current laws affecting the crypto space in Philippines. What we have is the Philippines Securities and Exchange Commission (PSEC) still working on regulating ICOs in order to establish if the digital tokens that are sold in such circumstances are to be considered security tokens or not.