The Cagayan Economic Zone Authority (CEZA), Philippines’ “fintech city”, has drafted new rules for the acquisition and trading of digital currencies such as Bitcoin, Ripple, and Ethereum in the Philippines meant to efficiently regulate and shield investors from the risks and danger associated with cryptos, MediaOutReach reports.
Under the novel framework, CEZA, which is the main regulating authority, has officially approved Digital Asset Token Offering (DATO) regulations which involve the acquisition of virtual assets, including utility and security tokens. What is more, the Asia Blockchain and Cryptocurrency Association (ABACA) is chosen as a Self-Regulatory Organization (SRO) to help run and apply the newly drafted rules.
"The SRO model allows industry players to police its own ranks while also promoting and protecting the interests of crypto investors. The rules will remain stringent in assessing the ethics and integrity of firms eyeing to launch digital Asset Token Offerings,” says Ma. Juanita Cueto, Chairperson, ABACA.Code of Conduct
ABACA, considering its profile, self-regulates the code of ethics & compliance with well-defined procedures that are known to produce near-optimum results, and industry standards for fintech companies carrying out business within, or, in any tie-up with ABACA and CEZA members.
Basing on its new self-regulatory purpose, ABACA will have to help the Philippines government in regulating all cryptoasset firms by properly converting industry actors into effective enforcers.
ABACA is implementing a code of conduct among all members and reports to CEZA any rift, conflict, violation, or serious issue relating to Offshore crypto exchange rules & regulations.
According to the new rules, all cryptos must have the right offering docume...