Philippines Government Introduces New ICO Regulations
As of now, the Philippines is on track to implement new regulations designed to oversee and monitor how ICOs legally raise investments and funds through their offerings. In light of this, the Philippines SEC released a draft guideline of the new rules on initial coin offerings on the 2nd of August and is currently awaiting feedback from the public prior to going into full effect.
The newly designed regulations will automatically be placing any tokens as securities until classified differently by any ICO token issuer. The regulator stated that most ICOs within the country have insisted that coins were, in fact, non-securities and forfeit any governance by the nations financial regulator.
Additionally, regulators warned against allowing participants to judge whether their tokens were considered securities, stating that these investors could not properly identify or verify whether an ICO is indeed a scam or not. The SEC adds that it will add the complexities involved in validating and proving that ICO tokens are classified as securities until further classification.
Following the new proposals, businesses legally operating within the country and looking to launch a token sale will first have to hand in an IAA to the financial authority three months prior to the date of issuing. All project employees and personnel will have to include general information as well as a full review of the initial coin offering and legitimacy while a third party opinion to dismiss the security status of a coin is required.
Following all this, the SEC will release a statement to report its decision on how the suggested ICO is offering securities or not. Additionally, any ICO issuer may go on operating should their tokens be classified as securities by the SEC only if the issuer has followed through signing up and been granted approval by the SEC prior to any token sale.
Should an initial coin offering only be available to twenty individuals or is restricted to a certain sector or business, a possible exemption may occur. In a global attempt at building stable securities laws and frameworks, this new move by the nation's regulators comes as a result. Another financial authority in Thailand also proposed a registration service allowing ICOs to raise their funds under full compliance.