Several Asian countries have already done the needful – they are either supporting cryptocurrencies and blockchain-powered projects, or they have banned them. Philippines has decided to take a crypto-positive position, and the country is ready with a 37-page document which delineates its rules for local ICOs. The Philippine Securities and Exchange Commission will now require entities planning to conduct ICOs to file an application with it for approval.
“All start-ups and/or corporations organized in the Philippines and/or duly registered with the Commission who proposes an ICO, and start-ups and/or corporations conducting or who will conduct an ICO targeting Filipinos must submit an initial assessment request including the attachments required under these Rules to the Commission in the form and manner directed under these rules not later than ninety days before the start of the pre-sale period,” the SEC states.
The prerequisites for filing an application with the SEC include submission of all team members and advisors to the NBI and police clearances for a reputation check, a detailed White Paper explaining the operations of the company, system architecture & the function of the token, payment of application fees, and a report by an independent legal counsel attesting that the tokens qualify as utility tokens, and not securities.
The Philippines’ move for regulating ICOs, and not banning them, puts it in line with other Asian countries such as Japan and Singapore, which already have a legal framework for allowing blockchain-projects to raise funds from the public. Thailand too has come up with a regulatory framework for ICOs, which mandates any entity seeking to conduct an ICO to first file an application with the Thai SEC for approval.
The South Korean regulators are also working on developing new rules for cryptocurrencies and ICOs are realising that banning cryptocurrencies is an unpopular move with the people. India, on the other hand, has put a banking ban on cryptocurrencies, as a result of which banking platforms are not allowed to interact with cryptocurrency platforms. According to a recent report by Incrypt, a blockchain community, India’s undecided stance on cryptocurrencies may cause 80% of its blockchain engineers to move to more crypto-friendly countries for seeking favourable employment opportunities.
Inarguably, blockchain and cryptocurrencies, which are contributing to a shift in the global economic order by revamping many business processes, are here to stay. The Philippines, with its crypto-friendly move, has stepped up its game in embracing the technology and the trends associated with it, and set an example for many other Asian countries where cryptocurrencies and ICOs are still in a grey area.