Legislation of the Philippines will Assess the Tokens Issued in ICOs, as Securities
The Philippines is close to adopting new legislation regulating the legal aspects of the ICO. Lately, the Securities and Exchange Commission (SEC) has published a draft law governing the activities of the ICO. In particular, the legislation assumes that tokens issued during ICO are, by default, regarded as securities.
In a published press release, the financial observer observed that most of the initial coin offerings in the Philippines claim that their tokens are'nt classified as securities and as a consequence should'nt be regulated by SEC.
At the same time, the regulator notes that it would be rather "dangerous" to allow investors to make judgments on this issue, since they don't have enough resources.
If the law is enacted, companies registered in the Philippines and wishing to sell tokens must file an initial application with the Securities and Exchange Commission, at least 90 days before the release. In addition to project details, it is also necessary to provide an overview of the ICO proposal and its credibility, as well as the legal opinion of an independent third party. After this, the SEC will publish a report with the result of its decision.
Changes in the issue of ICO regulation in the Philippines are due to the fact that different countries in the world are gradually working out the legal framework for such projects.#Philippines, #regulations, #ICO