The Philippine Securities and Exchange Commission (PSEC) has recently announced a delay in the release of ICO regulations that were originally expected by the end of 2018, according to a December 31 report by local news source The Philippine Star. No new deadline had been set at the time of writing.
The report also said that the postponement has come as the result of a request made by “different shareholders” who wanted more time to study the drafted regulations before they are finalized.
Companies Wishing to Conduct an ICO Must Submit Extensive “Initial Assessment Request” that Includes Personal Financial Information About Company Team Members
As the draft of the legislation currently stands, an ICO must be registered with the PSEC 45 days before the date of the pre-sale; companies must also submit an initial assessment request to the SEC when they propose an ICO.
This request must include a rather far-reaching group of documents: a curriculum vitae, a description of the problems that the ICO’s project is attempting to solve, and “police and National Bureau of Investigation (NBI) records of all members of the company or start-up doing the ICO,” the report said, as well as “bankruptcy records, revocation or suspension of membership of any of its team member from any self-regulating organization.”
Additionally, the draft states that companies who are planning on conducting an ICO should keep in line with securities regulations as outlined in Section 3.1 of the country’s Securities Regulation Code: “These should be registered with the Commission and necessary disclosures need to be made for the protection of the investing public.”
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The Technology “Has Its Benefits”
When asked why the Philippines has decided not to impose a total ban on ICOs like China and a number of other countries have done, SEC chairperson Emil Aquilino told the Star that the technology has its benefits.
The country originally released a draft of regulations on ICOs and other cryptocurrencies as early as August of 2018, but no other widespread action has been taken to regulate any aspect of the cryptocurrency industry within the country as of yet.
However, the PSEC has taken action against individual companies for failing to properly register with the PSEC, including Black Cell Technology Inc., Black Sands Capital Inc., Black Cell Technology Limited and Krops, which were challenged by the PSEC in January of 2018 for associating with a company that was selling securities (ICO tokens) “without the necessary license from the Commission.”
— Cryptocurrency ICO (@Crypto_ICO1) January 27, 2018