Philippines To Promote Innovation And Protect Crypto Investors
Following the trend of introducing new crypto regulations, Philippines proposed a legal framework concerning cryptocurrencies. It is supposed to protect the investors and help to develop the whole crypto industry.
Accordance with the law
2019 seems to be the year of new crypto regulations all around the world. Working on the law and making it as useful and as suitable for the citizens as possible is the new worldwide trend. Even though regulations introduced by some may be connected with restrictions and limitations, it is important to have the industry under control. Like any other business, digital assets are just a part of the global economy and need to be thoroughly taken care of.
Regulating the unregulated
Philippines decided to jump on the bandwagon and introduced a new legal framework concerning cryptocurrency transactions in the country. The responsibility for the whole legislative process is held by the Cagayan Economic Zone Authority (CEZA) which is a governmental entity. The regulator is said to be working in partnership with the Asia Blockchain and Cryptocurrency Association (Abaca). The new regulations will cover cryptocurrency usage, including utility and security tokens.
One of the most important parts of the new framework is the regulation of the Digital Asset Token Offering (DATO). From now on, it will be legally required for investors to provide full documentation containing details of the issuer, the project, and the expert certification. Moreover, any tokens will have to be listed on the licensed Offshore Virtual Currency Exchange (OVCE).
The main reason, stressed by the regulator, is to promote the cryptocurrency innovations and protect the investors. At the same time CEZA’s CEO, Raul Lambino,
reminds that the new framework is not a try to constrict the cryptocurrency industry in any way.
“We aim to provide a clear set of rules and guidelines that will boost innovation while also ensuring proper compliance by actors in the ecosystem,” we find Lambino’s statement. “We hope that these set of regulatory innovations will promote blockchain and crypto adoption by institutional investors and the financial system.”
Philippines is just another Asian country trying to regulate the cryptocurrency sphere. Maybe 2019 is a good year for making cryptos a legal part of the economy.
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