Philippines has recently introduced rules related to ICO’s. The cryptocurrency tokens are taken into account as securities while drafting these rules.
The SEC in the Philippines has already created draft rules. As a result, ICO’s will be more clearly and transparently regulated in the Philippines. Also, currently, it is seeking feedback from the public regarding the rules which have been drafted.
As the tokens are considered to be securities, there will be strict rules and regulations. Moreover, the financial watchdog published a press release. However, many people are claiming that tokens of considered as securities will create more problems. As a result, the public normally thinks that the ICO should not be governed by the SEC.
On the other hand, the regulator clearly stated that if the ICO’s are judged by the public, it will set a very dangerous precedent. Moreover, people do not have the right kind of resources in order to judge the ICO’s. That is why, if people are allowed to decide about the ICO’s, it can easily result in a problem. This is one of the main reasons why the regulator is trying to draft rules.
According to the rules, SEC has decided that the company should apply for the ICO at least 90 days before the launch of the tokens. This clearly indicates that SEC will look into the tokens as well as the fundamentals and after that, it will decide whether to approve the ICO or not.
Whenever a company applies for an ICO, the SEC will decide and released the statement in writing. As a result, the SEC will approve or disapprove in a transparent manner. As a result, it will become easier for the companies to get the permit.
According to the drafted rules, it clearly states that even though, the tokens are considered as securities but still, companies will have the permission to issue those tokens. Thus, the ICO launching process will actually become much easier for the companies.
In case, the tokens are issued to 20 people or less, there will be no need for such a registration with the SEC. In such a case, the process will become much easier for you. Also, it remains to be seen whether any other countries are following the same regulatory procedure or not. If indeed, there are clear rules and regulations pertaining to ICO’s, it will become much easier for the companies to launch them. There will be no confusion at all while launching the ICO’s. The Philippines has already taken the first move and it remains to be seen which other countries follow.
