According to the Manila Times on September 3, the Philippines Securities and Exchange Commission (SEC) said that due to the growing interest in cryptocurrencies in the global market, the Philippine government would explore the regulatory aspects of cryptocurrency & crypto-exchanges.
SEC Commissioner, Ephyro Amatong told Manila Times that the legislative framework for virtual currency platform in Switzerland and Australia would be considered while drafting the bill for the country. The Philippine SEC and the Central Bank of the Philippines (BSP) have agreed to jointly supervise the development of the country’s crypto-exchange regulatory framework.
SEC also aims to develop flexible legislation about Initial Coin offerings (ICO). The bill will enhance the safety of Small and medium-sized enterprise (SME) to raise capital through crowdfunding.
“SMEs have a way to look for investors without risking security,” Commissioner Amatong added.
On 2 August, the Philippine SEC has issued a set of draft regulations on ICO for public debate. The SEC Memorandum Circular, states ‘any company, registered in the Philippines that seeks to issue ICO or selling of ICO tokens to Filipinos, must submit a preliminary assessment request to the SEC to determine whether their token is security.’ Subsequently, the SEC would respond with a written report within 40 days about the treatment of the token.
In the summer of 2018, the Philippines SEC also proposed that virtual mining contracts should be considered as securities. The reason for the assumption is due to the incentivised process of blockchain mining which miners are being rewarded with tokens.
The Philippines government has taken a positive approach on the crypto industry. In late April 2018, the blockchain and fintech hub was set up in the Cagayan Economic Zone Authority (CEZA). With the aim to create an Asian Silicon Valley, the authorities have invited ten blockchain and crypto firms to work in the zone.
The government is expecting to attract $3 million in investments following the granting of provisional licenses to three cryptocurrency exchanges in the zone.
Photo Credits: Philippines SEC