Philippines Lay Down New Crypto Asset Rules To Govern The Market
The regulatory body familiar as Cagayan Economic Zone Authority aka CEZA, grant their permission and approves the DATO aka digital asset token offering regulations. This set of laws cover the crypto asset acquisition such as utility and security tokens.
Considering its new framework, the CEZA becomes the principal regulating agency. Moreover, the Asia Blockchain and Crypto Association which is most known as ABACA are recognized as a self-regulatory organization. This entirely helps implement and enforce new set of crypto asset rules. According to the CEZA administrator and CEO, Sec. Raul Lambino:
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.
To formulate these new crypto asset rules, every DATO should hold proper offering documents along with some pertinent details. These details are regarding the project, issuer, escorting advice together with certification of DA agents and experts.
Also, these tokens appear on the offshore virtual currency exchange aka OVCE which is licensed-compliance. On the other hand, stakeholders must also hold some confirmed eligible arrangements with accredited wallet custodians and providers.
App coins also called as utility tokens or user tokens provides holders the future access regarding these products services which company is willing to offer. Meanwhile, real assets including equity, limited partnership firms’ shares, or commodities, all support security tokens.
Mainly, they are used to share profits, pay dividends and interest. Or can make an investment in various tokens or crypto asset that can generate profits for specific token holders. Additionally, CEZA notes to core emphasize on collaborating with industry players and locator Fintech companies.
They believe that this might help them to gain insights and stay updated with relevant innovations ongoing with these emerging markets. On the other hand, the chairperson at ABACA, Juanita Cueto comments:
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.
Meanwhile, CEZA grants and issues a provisional principal OVCE licenses to almost 19 companies showing interest in blockchain ecosystem.