The Commission on securities and exchange Commission of the Philippines (SEC) published the draft rules of regulation of primary offerings of coins (ICO).
In particular, the new SEC rules offer a “default” to consider ICO-tokens as securities, if the issuers are unable to prove otherwise. Before the rules come into force, the financial regulator hopes to get feedback from the public.
In a press release, the SEC stated that the majority of the local organizers of the ICO claim that their tokens are not securities, and therefore does not fall within the Commission’s purview. However, in the opinion of the financial regulator, “dangerous” to give investors the opportunity to judge the nature of the tokens, because they do not have the resources to identify fraudulent ICO projects.
Under the proposed SEC rules, was in the Philippines, the company will have to submit a bid to host controller initial assessment of upcoming assets. Such application must be submitted at least 90 days before the planned emission.
Thereafter, the SEC shall provide a written report with the decision on whether the proposed release of ICO-token security or not. The document also States that the company can continue working on their projects, however, the issue of tokens can be produced only after receiving approval from the regulator.
If the ICO organizers plan to distribute tokens among not more than 20 employees or among a limited circle of institutional investors, such as banks, investment and insurance companies, the project may be exempt from SEC registration.
ForkLog previously reported on how Philippine authorities found a way to make $67 million, as well as to attract investment in local Kagansky special economic zone.