The Commission on securities and exchange Commission (SEC) of the Philippines has published draft regulations governing the conduct of the ICO for the collection of public comments before they act.
Rules, in particular, assume that all tokens issued via the ICO, are securities, if the issuers are unable to prove otherwise.
As noted by the regulator in a press release, the organizers of most conducted in the Philippines, initial offers of coins claimed that their tokens are not securities and therefore not subject to SEC regulation.
However, according to the regulator, it is too dangerous to allow investors to draw conclusions in this matter because they lack the resources to determine which ICO may be fraudulent. Further, the SEC continued:
“Therefore the SEC will place the burden of proof which tokens are released through the ICO, in the hands of supporters, assuming that tokens are securities, unless proven otherwise”.
According to the published rules, a company registered in the Philippines and want to spend the ICO must submit an initial application at least 90 days prior to the release of tokens.
In addition to the personal data of the members of the project team and a summary of the application must contain an overview of the proposals the ICO and its creditworthiness, and a legal opinion of independent parties with a justification of why the token is not a security. After which the SEC, in writing, to answer with its decision on this issue.
Issuers ICO in any case will be able to continue your project, regardless of the classification of the token SEC. Only in the case that it is recognized as a security, the approval of the regulator should be obtained prior to the sale of tokens.
In the draft rules provides that the ICO, involving no more than 20 private investors or only to institutional players such as banks, insurance and investment funds and firms may be exempted from mandatory registration with the regulator.
Recall that SEC of the Philippines earlier had promised to develop comprehensive rules for issuing and trading crypto-currencies before the end of this year. And previously decided to regulate contracts for cloud mining as securities.
Meanwhile, the authorities of the Special economic zone the province of Cagayan (CEZA) in the North already consider applications for licenses from 70 cryptocurrency companies. Just CEZA expect to gain $67 million just for the licensing industry.