According to a press release from the Asia Blockchain and Crypto Association (ABACA) on 4th February, the Philippines government has introduced a new set of rules governing Digital Asset Token Offering (DATO).
The Philippines has done this through the Cagayan Economic Zone Authority (CEZA), and it sets out a comprehensive set of new rules governing cryptocurrencies in a bid to effectively regulate in a way that protects investors.
The press release states, “CEZA has approved the Digital Asset Token Offering (DATO) regulations that cover the acquisition of crypto assets, including utility and security tokens. Under the new framework, CEZA is the principal regulating authority. The Asia Blockchain and Crypto Association (ABACA) is designated as a SRO to help implement and enforce the new rules.” ABACA is a self-regulatory organisation (SRO) granted under the authority of the CEZA.
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.”
Under the rules, all DATOs must have proper offering documents with pertinent details on the issuer, project, and accompanying advice and certification of experts and DA Agents. Tokens must be listed on the licensed Offshore Virtual Currency Exchange (OVCE). Stakeholders must also have confirmed arrangements with accredited wallet providers and custodians.
Lambino explained, “The safeguards built into CEZA’s rules and system will lead to greater investor protection and transparency. The involvement of DA agents and experts bring in competent and neutral third parties into the process to help ensure issuers are truthful and accurate.”
Juanita Cueto, Chairperson of ABACA added, “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 Digital Asset Token Offerings,”
The press release also revealed, “CEZA is moving forward with its goal to develop the economic zone as the center of fintech firms in Southeast and Northeast Asia. The economic zone authority has already approved and issued provisional principal offshore virtual currency exchange licenses to 19 companies engaged in the blockchain ecosystem industries.”