To protect Philippine residents from potential scams, the Cagayan Economic Zone Authority (CEZA) confirmed that it won’t allow anyone residing in the Philippines from participating in Initial Coin Offerings (ICOs) that may be launched by crypto companies setting up in the Cagayan Economic Zone.
This is revealed by CEZA chief Raul Lambino during the Global Blockchain Summit, held at Marriot International Hall in Pasay City.
All crypto companies that will set up offices in the economic zone will be thoroughly inspected as part of the agreement once they obtain their provisional license to operate as a cryptocurrency exchange. This includes background checks like determining the people behind the companies and how they are able to set up crypto exchanges.
This means CEZA will know if a company in the zone is going to launch an ICO. If it does, CEZA has ways to protect PH residents from participating. According to Sec. Lambino, the IP addresses of these exchanges will be blocked so that no one within the Philippines can access them.
One reason why PH residents won’t be allowed is because the country’s Securities and Exchange Commission (SEC) has issued an official advisory against initial coin offerings in the Philippines. As Initial Coin Offerings offer tokens that might appreciate in value over time, then it is classified as “securities”, and therefore, companies must register with the SEC.
Sec. Lambino said he proposes that these companies also establish back offices in the country and register with the SEC.
At the moment, the SEC is formulating formal guidelines for initial coin offerings and “order book type” of cryptocurrency exchanges with fiat to crypto transactions.
Source: CEZA Press