The South-East Asian country of the Philippines is set to introduce a fresh set of regulations to govern cryptocurrencies, which will encompass the acquisition, utility, and security of the same.
The Philippines is pushing these regulations to ensure their cryptocurrency investors are secure and the industry has the required innovation to grow. The regulations have been spearheaded by the country’s chief regulatory body, the Cagayan Economic Zone Authority [CEZA].
CEZA are calling these regulations the Digital Asset Token Offering [DATO] regulations, which will require the curators of cryptocurrency assets to provide necessary documentation, complete with the details of the issuer, project, advisory team, the experts involved among others to the regulatory body.
A licensed exchange, the Offshore Virtual Currency Exchange [OVCE] will also be set-up specifically for these tokens to be listed on. In addition to the exchange, wallet and custody providers have to be approved by the CEZA as well.
CEZA has also created three-levels for digital assets offerings. The first, tier one, will only cover those projects with crypto-assets whose value does not exceed $5 million. Tier two will range between $6 million to $10 million, and the final tier will be those projects which boast assets over $10 million.
The CEO of CEZA, Raul Lambino said:
“We 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.”
In order to broaden its regulations, CEZA will be working with the Asia Blockchain and Cryptocurrency Association [ABACA], a cryptocurrency representative body that advocates the adherence to necessary regulations. ABACA will also create a ‘code of conduct’ and any breach of the same will be reported to the CEZA.
Juanita Cueto, chairperson of ABACA said:
“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.”
The regulatory authority has already permitted 19 cryptocurrency exchanges to commence operations. In addition to regulating what it sees as a volatile industry, CEZA’s long term aim is to create a finance and technology-centric economic zone and introduce regulation that can increase innovation within it.