February 11, 2019, Cagayan, Philippines – The Cagayan Economic Zone Authority (CEZA) unveils a new set of rules to govern cryptocurrencies. The rules, called “Digital Asset Token Offering (DATO) regulations” are crafted to further regulate the space and protect investors.
DATO regulations govern acquiring and launching crypto assets, whether they are security or utility tokens. Token offerings are required to have proper offering documents and extensive disclosure of details surrounding the project, including certification from experts. The tokens will then be listed on the licensed “Offshore Virtual Currency Exchange” (OVCE). (Read More: CEZA Has Already Granted 23 Offshore Crypto Licenses, Posted Record 2018 Growth)
There are 3 levels of DATO according to the amount of investments.
- Tier 1 – up to $5 million assets and investments with payment made in digital tokens
- Tier 2 – $6 million to $10 million
- Tier 3 – more than $10 million
CEZA, together with Self-Regulation Organization (SRO) called Asia Blockchain and Crypto Association (ABACA) will also have approved wallet providers and insured digital asset custodians.
“The safeguards built into CEZA’s rules and system will lead to greater investor protection and transparency. The involvement of DA agents and experts bring in competent and neutral third parties into the process to help ensure issuers are truthful and accurate,” – Sec. Raul Lambino, CEZA
The move is seen to further strengthen the position of the economic zone as a fintech center in Northern Philippines. Fintech Solutions and Offshore Virtual Currency (FTSOVC) license are awarded to fintech, crypto, and blockchain companies that want to set up in Northern Cagayan. The list of licensed offshore cryptocurrency firms can be found here.
CEZA has approved the creation of Asia Blockchain and Crypto Association (ABACA) as a self-regulatory organization to ensure rules are being complied upon by companies setting up in the zone.
This article first appeared at BitPinas on February 11, 2019: Philippines CEZA Issues New Rules on Obtaining Cryptocurrency