According to the Cagayan Economic Zone Authority (CEZA), being the regulatory authority, the new rules cover areas related to the purchase of cryptocurrencies, including investment and utilitarian tokens. CEZA explained that the goal is effective regulation of cryptocurrencies, to protect the interests of investors and the promotion of innovation.
The guidelines called Digital Asset Token Offering (DATO) suggests that the creators of cryptocurrency assets, triggering ICO, must submit properly prepared documents, which should contain information about the Issuer and the project, as well as certification and expert advice.
Tokens must be in the list of licensed Offshore Virtual Currency Exchange (OVCE), which are specifically created for effective regulation. According to the regulator, which designed and sanctioned the new structure, the participants should have formal arrangements with providers of cryptocurrency wallets, accredited at CEZA.
The new rules are divided into three levels of digital asset offerings. The first covering investments in digital assets in the amount of up to $ 5 million. The second level covering of investment in digital assets in the amount of from 6 to 10 million dollars. The third level is the investment worth more than $ 10 million.
Raul Lambino, CEO of Ceza, said:
"Structure DATO aimed at protecting investors and promoting innovation. We intend to provide a clear set of rules and guidelines that will promote innovation and ensure compliance with the rules by participants of the ecosystem. We hope new regulations will help institutional investors and the financial system to use the advantages of cryptocurrencies and blockchaintechnology".
A government regulator said it will work together with the Asia Blockchain and Cryptocurrency Association (ABACA) ― the representative body of a self-regulating industry, which is obliged to monitor compliance with the rules. ABACA will also inform CEZA any violations of the rules of the exchange of virtual currencies in offshore zones.
"The safeguards available in the system CEZA ensure greater transparency and protection for investors. The involvement of experts on digital assets will assist issuers in providing truthful and accurate information."
CEZA, which has already allowed 19 companies to operate cryptocurrency exchanges as it moves to develop a financial technology economic zone, also stressed that the new rules will encourage innovators to the responsible use of new technologies. Cooperation with local fintech-firms and industrial players will help the government to be aware of innovations in emerging markets.
Juanita Cueto, chairperson of ABACA, said:
"The SRO model allows industrial players to manage their employees and to promote and protect the interests of cryptocurrency investors."