The Philippines’ Securities and Exchange Commission (SEC) is set to release its draft regulation on the use of cryptocurrencies as an investment tool in the country. This regulation will also step on Initial Coin Offerings (ICO) to protect the Filipino investors.
The newly-appointed SEC Chairman Emilio Aquino shared during a chance interview that the corporate watchdog is looking at ICOs. This is to whether it will allow retail investors to engage in ICOs available in the country or to Filipinos.
As previously reported, SEC has been meeting with cryptocurrency and blockchain stakeholders to help them create rules that will govern cryptocurrencies and blockchain in the country. During the interview, Mr. Aquino said they are “getting the best stuff from different models”. He then referred to Canada’s framework where it is open to retail investor participation but is still subject to certain parameters.
He also said that companies who are thinking of launching an ICO to register with SEC first. A show of funds is also needed to prove that they have the capability to launch a business.
“They ask for money but they don’t have a fund. They have to put up a fund first. Eventually, they should also have a platform. We have to look at the platform,” – Mr. Emilio Aquino, Chairman, SEC
An escrow is also being considered where an interested party should put its funds in before setting up the cryptocurrency trading platform.
Currently, SEC and BSP have been using circulars, advisories, and the Securities Regulation Code (SRC) regarding cryptocurrencies and ICOs.
- Read more: Learn more about SRC
- SEC Further Comments on ICOs and the Application of Securities Regulation Code
- SEC Releases Official Advisory on Initial Coin Offerings (ICO)
- BSP to have First Hand Legislation Information from IDACB
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