The Cagayan Economic Zone Authority (CEZA) of the Philippines announced a comprehensive framework to regulate the country’s cryptocurrency industry, with a focus on token distribution (ICOs).

Under the new framework, state-owned companies are the primary regulators of the encryption industry, while the Asian Encryption Association (ABACA) is designated as an SRO to help implement and enforce new rules.

The framework requires Digital Asset Token Distribution (DATO) to have appropriate distribution documents containing details of the issuer, project, and recommendations and certifications of relevant experts and DA agents. They are also categorised into three catagories, below $5 million in investment, between $5 million and $10 million, and lastly above $10 million.

Raul Lambino, CEO of CEZA

It also categorized the tokens based on their usage – user tokens, security coins, and commodities. In addition, these companies must also list tokens on the licensed offshore virtual currency exchange (OVCE).
Sec. Raul Lambino, CEZA administrator and CEO, had this to say to Finance Magnates:

“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.”

Although many countries do not have very clear regulations on cryptocurrency and ICO, there aren’t many and most have decided to ban and then rgulate later. The Philippines isn’t bucking this trend and is looking to give clear regulations, which must be applauded.