The Philippines has unveiled a set of new rules called the digital asset token offering (DATO) regulations to govern the cryptocurrency sector and protect investors.
Cagayan Economic Zone Authority (CEZA) will serve as the principal regulating authority under the new framework.
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The Asia Blockchain and Crypto Association (ABACA) will be a self-regulatory organisation (SRO) responsible for putting the rules into effect.
These rules include the acquisition of crypto assets such as utility and security tokens.
Under the new rules, DATOs are required to offer adequate documentation.
These cover detailed information related to the issuer, project, and the experts involved.
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By GlobalDataThe rules also mandate tokens to be listed on the licensed offshore virtual currency exchange.
Moreover, the regulator has created three DATO levels. Tier one will include projects with crypto assets worth less than $5m.
Projects having crypto assets between $6m and $10m will fall under tier two, while tier three will include projects with assets of more than $10m.
CEZA administrator and CEO Raul Lambino said: “It is our goal to provide a clear set of rules and guidelines that will foster innovation yet ensure proper compliance by actors in the ecosystem.
“It is our hope that these set of regulatory innovations will take the digital asset sector one step closer to adoption and acceptance by institutions and the traditional financial system.”
