Southeast Asian country, Philippines has released a regulatory framework to govern the activity of crypto startups who wish to raise money through Digital Asset Token Offering (DATO)
According to a Feb 4 press release by Cagayan Economic Zone Authority (CEZA), the new framework is designed to provide protection those who invest in security tokens or utility tokens offered as a fundraising mechanism by crypto projects.
CEZA’s CEO, Raul Lambino said in the release,
"It is our hope that these set of regulatory innovations will take the digital asset sector one step closer to adoption and acceptance by institutions and the traditional financial system,"
Keypoints From Philippines STO Regulations
The Cagayan Economic Zone Authority (CEZA) will be the primary regulator of STO in the Philippines while the Asia Blockchain and Crypto Association (ABACA) will work as a self-regulatory organization to ensure compliance by projects.
All projects interested to issue an STO must complete all necessary paperwork with regulators. The paperwork will reveal details about the issuer, project, and certificates held by key members of the project.
New kind of exchanges called the Offshore Virtual Currency Exchanges (OVCE) created by the regulators must list any STO offered in the Philippines.
STOs will be classified into three categories:
Projects whose assets and potential investor funds in digital tokens are up to $5 million.
Projects whose assets and investments fall within $6 million - $10 million
Projects whose assets and investments exceed $10 million.
The regulators will select crypto custodians and wallet provider to safeguard investor funds during the STO period.
Since the turn of the year, efforts to regulate cryptocurrencies has intensified across different countries and regions.
Like the Philippines, South American country, Venezuela released a regulatory framework for cryptocurrencies earlier this week, while South Africa, UAE, and the U.K are expected to do the same later this year. India would have fallen into this category except for recent reports that the country’s regulatory committee fears that allow cryptocurrencies could destabilize their fiat currency — Rupee.
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