Philippines SEC (PSEC) Postpones the Release of ICO Crypto Coin Regulations
The most anticipated PSEC regulation on Initial Coin Offerings (ICOs) has officially been postponed from its approximate time frame of the end of 2018.
According to news outlet, Phil Star Global, the intended release was delayed due to the fact that the SEC still needed time to prepare. In particular, it was noted that the stakeholders involved have requested that further assessments are needed in the ICO regulations draft prior to making them official.
As for the rules that have been considered thus far, it seems like tokens issued via ICOs will be classified as a security under Section 3.1 of the Securities Regulation Code. Another rule that has been mentioned is that of conducting an ICO.
That is, firms are required to register with the SEC about 6 weeks prior to the set pre-sale date. Also, “an initial assessment request”, which requires firms to complete police and financial background checks and provide resumes of all of the involved members, must be submitted with the PSEC prior to conducting the ICO.
The measures taken by PSEC definitely works in the interest of investors to ensure that one’s investment does not go down the drain. This is definitely needed considering the vast number of scams involving ICOs alone that took place in most of 2018.
In addition to pre-registering and undergoing the different security measures to ensure each member is serving within a project with best interests, the SEC has supposedly also asked for a description of the project goals and mission, along with its potential in positively impacting the Philippines market.
According to Phil Star Global, the country’s decision to encourage ICOs with rules implied, as opposed to banning them altogether is to promote technological advancements along with the supposed “benefits”.