The Securities and Exchange Commission (SEC) of the Philippines is eyeing a plan to allow cryptocurrency exchange platforms to operate in the country, given they follow certain regulations, according to the Manila Times.
SEC Commissioner Ephyro Luis Amatong said the agency hopes to release draft rules in the coming weeks and that the goal is to regulate exchanges as trading platforms as quickly as possible.
The SEC will work with the Philippines Central Bank (Bangko Sentral ng Pilipinas) to regulate the exchanges.
At the moment, the Central Bank is approving crypto exchange licenses on an ad hoc basis but has only approved one company, which is coins.ph.
The agency also addressed the rules around ICOs that were proposed a few months ago.
The interesting rule is that a company filing an ICO should issue an ‘initial request assessment’ which the SEC will read through and decide if the token should be treated as a security. The debate about whether or not an ICO token is a security is one of the more important discussions in the crypto universe because the choice will dramatically affect how cryptos are regulated.
Furthermore, Philippines companies issuing an ICO will need to register as a corporate while foreign companies will need to open a branch in the country.
The SEC also plans to release an official ICO framework next week.
The proposition appears to be fairly progressive. It sets itself up to allow for exemptions (although only 20 in one given year) and the commission appears to be embracing what it views as an inevitable technology-driven investment tool.
The goal is not dampen the crypto space but to provide a safe avenue for small companies to raise investment.
Copyright : fazon