Philippines Unveils New Guidelines Regarding Crypto Assets Procurement

In Investments, News, World

The worldwide adoption of cryptocurrency has brought countries rich and poor to issue new regulations upon acquisition of crypto assets. 

The Cagayan Economic Zone Authority (CEZA) in the Philippines, reveals a sweeping set of new guidelines that would oversee crypto assets in an effort to essentially police and protect venture capitalists.

CEZA has authorized the Digital Asset Token Offering (DATO) procedures that embody the procurement of crypto assets which include utility and security tokens. According to the new system, CEZA is the primary regulating authority. The Asia Blockchain and Crypto Association (ABACA) is the appointed Self-Regulatory Organization (SRO) to facilitate and impose the new regulations.

President Rodrigo Roa Duterte is given a briefing by Cagayan Economic Zone Authority (CEZA) Administrator Raul Lambino on CEZA’s medium-term development plan for the Lal-lo Airport as the President leads the inspection of the airport in Lal-lo, Cagayan province on March 14, 2018. (Wikimedia Commons/KarlNorman Alonzo/Presidential Photo)

ABACA will help the Philippine government in the regulation of cryptocurrency companies through an effective transition of industry contenders into enforcers. It will implement a decorum among the members and communicates with CEZA regarding any breach, defiances, or anything relating to OVCE principles and regulations.

CEZA administrator and chief executive officer Sec. Raul
Lambino 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.”

Major cryptocurrencies – Bitcoin; Ethereum & Ripple. Image courtesy of Pixabay/sulayman360

The provisions necessitate that all DATOs should have appropriate offering documents with relative information on the producer, and associated counsel and accreditation of experts and DA Agents. Tokens should be registered on the licensed Offshore Virtual Currency Exchange (OVCE). Investors should likewise have validated arrangements with authorized wallet providers and stewards.

3 Important Levels of Crypto Offering

Tier 1. It encompasses assets and investments not more than $5 million with
payment processed in crypto assets.

Tier 2. It deals with investment between $6-$10 million.

Tier 3. It concerns huge investments that is more than $10 million.

Utility coins, commonly known as app coins or user tokens, provide holders after time entry to the products or services a company offers. Security tokens, on the other hand, are supported by real assets which include equity, commodities, or stakes of a limited partnership company. These are utilized as dividend payments, share proceeds, pay interest or venture in other tokens or assets to initiate returns.

The economic zone authority specified that working with locator fintech companies and industry players will keep the government aware and keep updated with the transformations on the burgeoning markets. It uses research on the domestic and international business standards to effectually control the industries and licensees covered by its governance.

The capability of the blockchain and digitizing of assets and securities are observed to eventually establish a huge effect on the fintech field. The new DATO guidelines will provide the much required transformation to the sector and empower trendsetters to adopt new technologies judiciously.

 


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