The Securities and Exchange Commission of the Philippines (SEC) has published a draft regulation of initial coin offering (ICO).
The new SEC regulations consider ICO-tokens as securities, if their issuers can not prove otherwise. Before the rules come into force, the financial controller hopes to receive feedback from the public.
The SEC press release says that most of the local organizers of the ICO claim that their tokens are not securities, and therefore should not be regulated by Commission. However, financial controller think it is “dangerous” to give investors the opportunity to independently judge the nature of the tokens, because they do not have sufficient resources to identify fraudulent ICO projects.
According to the SEC’s proposed rules, companies registered in the Philippines will have to file an application for the regulator’s initial assessment of the upcoming assets. Such an application must be filed at least 90 days before the planned issue.