The Securities and Exchange Commission of the Philippines announced yesterday that very soon it would begin to regulate cryptocurrency transactions, creating a legal framework for the matter before the end of this year.
The new regulatory provision will seek to protect users from frauds related to cryptocurrencies, such as pyramid schemes and investment clubs, as well as those companies that falsely promise “revolutionary” cryptocurrencies that never get issued, based on fraudulent ICO.
As stated in a press conference Emilio Aquino, Director of the Commission, this year the regulation will be ready. “We need to act on the Initial Currency Offers (ICO) because they have proliferated during 2017. We want to propose our own set of regulations. We must be careful about the protection of investors, “he said.
The ICO regulations will include cybersecurity guidelines on cryptocurrency markets, the eligibility of issuers regarding directors and the technology used, and the level of training of investors. The regulator will have to approve any sale of cryptocurrencies and will investigate sellers without a license.
Since last year, the Philippines has been considering regular Bitcoin as a financial asset, causing this and other cryptocurrencies to be governed by similar legal precepts. In addition, the central bank of that country began issuing licenses for operators of commercial activities involving bitcoin.
ASIA IS EXAMPLE IN REGULATING CRYPTOCTIVES?
Asia has been a leading continent in the provision of regulations in the field of cryptocurrencies, as exchange houses have been censored as well as the holding of ICO. In this last sense, both China and South Korea have made important prohibitive movements, while in other countries such as Thailand and Singapore, the latter not very friendly with cryptocurrencies, alerts have been issued from their central entities. Thailand also considers ICOs to regulate very soon.
Particularly in South Korea, it was suggested that individuals and companies that made investments in ICO abroad could be sanctioned, after prohibiting them without affecting the already circulating cryptoactives.
In the case of China, the prohibitions on ICOs were also quite firm, but the authorities said that they would not limit the development of blockchain. Apparently, the government is more interested in the development of this technology than in the emergence of cryptoactives as disruptive financial tools.