The Philippines are moving forward with their regulatory framework regarding digital asset token offerings (DATO). The information comes from ABACA, or the Asia Blockchain and Crypto Association.
The regulations are released by the Cagayan Economic Zone Authority (CEZA) and aim to protect investors and regulate the whole cryptocurrency space in the country. Under the new regulations, issues such as the acquisition of digital coins or assets will be affected.
In this case, the role of CEZA is now considered as a main regulator of the cryptocurrency market in the Philippines, while ABACA will be self-regulatory body.
From now on, all DATOs must have proper documentation, giving details on the issuer and the project DATO aims to accomplish. The documents must also be accompanied by the approval of relevant experts and certification. The issued tokens will be listed on the Offshore Virtual Currency Exchange (OVCE), which is licensed.
According to press, the rules of investments are divided into three separate tiers. Tier one pertains to investments and assets not exceeding $5 million made in digital tokens; tier two covers the $6–$10 million range, and tier three is for any investments and assets that exceed the $10 million mark.
CEZA is hopeful that these regulations will protect investors and give a clear guideline as to what quality is expected from all applications for DATO.