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Cryptocurrencies

New rules on acquiring cryptocurrency assets issued in Philippines

Wednesday 6 February 2019 | 10:13 AM CET

Through the Cagayan Economic Zone Authority (CEZA), the Philippines has unveiled new rules governing cryptocurrencies to regulate and protect investors.

The Digital Asset Token Offering (DATO) regulations, already approved by CEZA, cover the acquisition of crypto assets, including utility and security tokens. While CEZA is the principal regulating authority, the Asia Blockchain and Crypto Association (ABACA) is designated as a self-regulatory organisation (SRO), and its goal is to help implement and enforce the new rules.

As per the new rules, all DATOs must have proper offering documents with valid details on the issuer, project, as well as advice and certification of experts and DA Agents. Moreover, tokens must be listed on the licensed Offshore Virtual Currency Exchange (OVCE), and for stakeholders it is mandatory to have confirmed arrangements with accredited wallet providers and custodians.

Three levels of DATO are covered by the regulations: Tier 1, which involves assets and investments not exceeding USD 5 mln with payment made in digital tokens, Tier 2 covering USD 6 mln to USD 10 mln in investments, and lastly Tier 3 that represents investments exceeding USD 10 mln.

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