The Cagayan Economic Zone Authority (CEZA) had issued a new set of regulations in the acquisition and trading of cryptocurrency assets in the Philippines that favors self-regulation.
This is according to a report published by Fintech News Singapore on 1 February 2019.
CEZA, which is the principal regulating authority in the new cryptocurrency asset regulations, had designated the Asia Blockchain and Crypto Association (ABACA) as the self-regulatory organization that would help in the implementation and enforcement of the new regulations.
ABACA is tasked by CEZA to help regulate cryptocurrency companies by turning them into regulation enforces.
ABACA is also tasked to enforce a code of conduct among its members, and to report violations and matters related to rules and regulations on offshore virtual currency exchanges.
CEZA said that the new set of regulations cover digital asset token offerings, which involves the acquisition of cryptocurrency assets that includes utility and security tokens.
The regulations would require all digital assets to have the proper offering documents, which includes the details about the issuer, project, and advice and certification from experts and designated agents.
Tokens would also be required to be listed on the license offshore virtual currency exchange, with stakeholders being required to have confirmed arrangements with accredited wallet providers and custodians.
The regulations cover digital asset offerings that are divided into three tiers based on the amount of assets and investments involved, with Tier 1 involving not more than five million US dollars worth of assets and investments with digital token payments, Tier 2 involving six to 10 million US dollars worth of investments, and Tier 3 involving more than 10 million US dollars worth of investments.
CEZA said that the new regulations would bring much needed change to the fintech and blockchain industries and would encourage responsible use of new technologies by innovators.
CEZA administrator and CEO Raul Lambino said that the CEZA has built a virtual currency exchange ecosystem where tokens could be listed, adding that, with ABACA, it had approved wallet providers and insured digital asset custodians for the proper storage and governance of investor proceeds.
Lambino said that CEZA’s rules and systems will “lead to greater investor protection and transparency,” adding that the involvement of designated agents and experts will “help ensure issuers are faithful and accurate.”
The Cagayan Economic Zone Authority, which is being envisioned as the “fintech city” of the Philippines, aims to become a center for fintech firms in Southeast Asia and Northeast Asia.
CEZA had already approved and issued provisional principal offshore virtual currency exchange licenses to 19 blockchain companies.