The Securities and Exchanges Commission of Philippines said on Monday 29th January 2018 that they were in the process of drafting rules that would be used to regulate Cryptocurrencies and other ICOs. This will be done to ensure that the investors are safeguarded, and the risk of fraud is entirely reduced.
The regulation is expected to be complete before the end of 2018 and would cover registration and insurance of Cryptocurrencies. This was according to the information that was given by the SEC’s enforcement and investor protection commissioner, Emilio Aquino. At a press conference earlier on Monday 29th January 2018; Emilio Aquino stated that their intention was to create their own set of regulations that would work well in this industry. In his own word, this senior officer at the Philippine’s SEC noted that it is imperative to take much care on how the investors are safeguarded in this new financial era.
Besides that, the regulations will also cover the guidelines on the Cryptocurrency markets cybersecurity as well as the financial eligibility and literacy of the investors. Aquino went ahead to state that the reason behind this planned activity is to bring to an end the cases of ICO promoters who are fond of going missing.
ICOs Might Have To Register
According to Philstar, a local news source in the Philippines; ICOs may be forced to register with the SEC due to the fact that it uses the Cryptocurrencies as the securities. Just at the beginning of January 2018, SEC gave a warning to the public cautioning them to be careful any time they are dealing with the ICOs.
Apart from that, it also went ahead to file a cease-and-desist order against four firms as well as an ICO operator. They cited matters to do with security registration regulations to be the reason behind the order.
ICO Activities Banned In The Asian Market
In other news, the Chinese government outlawed the ICOs in September 2017 claiming that they were illegal in regards to the existing domestic regulations. This move was viewed as a bit harsh, but the Chinese authorities had all the reasons to back it up.
The operations of ICOs, according to the top Chinese authorities were viewed as a type of non-approved open fund-raising procedure. They also noted that this process was suspected of unauthorized sale of tokens, unauthorized fundraising as well as the illegal issuance of securities. Other criminal activities that the ICOs in China were accused of were operating as a pyramid scheme and financial fraud.
While Chinese authorities were listing all the reasons they had for outlawing the operations of ICO, similar activities were occurring in South Korea. The South Korean Financial Services Commission also in September 2017, banned the local firms from participating in any activities to do with the ICOs. Its reasons for this directive were however different from the one that was issued by the Chinese authorities. The South Korean Financial Services Commission described ICO as extremely speculative and as the cause of the violation of the law of the capital market.