Digital Asset Token Offering (DATO) To Issue New Regulations In Philippines
Cagayan Economic Zone Authority (CEZA) of the Philippines has recently released a set of new guidelines for cryptos in an attempt to protect investors and regulate the ecosystem better. Under the new framework, CEZA is the principal regulating authority. The Asia Blockchain and Crypto Association (ABACA) is designated as a self-regulatory organization (SRO) to help implement and enforce the new rules.
Raul Lambino, CEZA administrator, and CEO said:
“It is our goal to provide a clear set of rules and guidelines that will foster innovation yet ensure proper compliance by actors in the ecosystem. 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.”
Tokens must be listed on the licensed offshore virtual currency exchange (OVCE). Stakeholders must also have confirmed arrangements with accredited wallet providers and custodians.
Utility tokens give holders future access to the products or services offered by a company. Security tokens are backed by real assets such as equity, shares of a limited partnership company, or commodities.
The Cagayan Economic Zone Authority (CEZA) is a government-owned and controlled corporation (GOCC) tasked to manage and supervise the development of the Cagayan Special Economic Zone and Freeport (CSEZFP). It is the first economic zone in the Philippines to offer to host financial technology companies in the emerging fintech industry with the issuance of the first batch of FTSOVC certificates to three locators. Approximately 54,118 hectares of land for prime development falls within the jurisdiction of CEZA.
Juanita Cueto, chairperson of ABACA says:
“The SRO model allows industry players to police its own ranks, while also promoting and protecting the interests of cryptocurrency investors. The rules will remain stringent in assessing the ethics and integrity of companies eyeing to launch DATOs.”