The Philippines’ Cagayan Economic Zone Authority (CEZA) today unveiled a comprehensive framework to regulate the cryptocurrency industry in the country especially initial coin offerings (ICOs).
According to the new framework, the government-owned corporation is the principal regulating authority of the crypto industry while the Asia Blockchain and Crypto Association (ABACA) is designated as SRO to help implement and enforce the new rules.
Commenting on the development, Sec. Raul Lambino, CEZA administrator and CEO, said: “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.”
The framework mandated the Digital Asset Token Offerings (DATO) to have proper offering documents with pertinent details on the issuer, project, and accompanying advice and certification of experts and DA Agents. Moreover, the companies have to list the tokens on the licensed Offshore Virtual Currency Exchange (OVCE).
Concrete Classifications
Furthermore, based on the involved investment amount, the framework categorized the DATOs in three types - below $5 million in investment, between $5 million and $10 million, and lastly above $10 million. It also categorized the tokens based on their usage - user tokens, security coins, and commodities.
In an attempt to create a safe environment and protect the interest of digital asset investors, CEZA has also developed an eco-system of OVCA for the token listings and approved certain wallet providers and custodian services to ensure safe asset storage.
"The SRO model allows industry players to police its 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," said Ma. Juanita Cueto, chairperson of ABACA.
"CEZA is moving forward with its goal to develop the economic zone as the center of fintech firms in [the] southeast and northeast Asia. The economic zone authority has already approved and issued provisional principal offshore virtual currency exchange licenses to 19 companies engaged in the blockchain ecosystem industries.”
