The Philippines is about to set its new regulations for the cryptocurrency industry in the South East Asian county, overseen by the regulatory body, the Cagayan Economic Zone Authority (CEZA).
The new rules, which require all operators of cryptocurrency firms operating in the country to submit more thorough documentation, will be called Digital Asset Token Offering (DATO) regulations; an exchange will be specifically launched to ensure the new guidelines are adhered to.
The Offshore Virtual Currency Exchange [OVCE] will oversee the industry on behalf of CEZA which has now published three discrete tiers of digital assets offerings. The CEO of CEZA, Raul Lambino commented:
“We aim to provide a clear set of rules and guidelines that will boost innovation while also ensuring proper compliance by actors in the ecosystem. We hope that these set of regulatory innovations will promote blockchain and crypto adoption by institutional investors and the financial system.”
CEZA’s first tier will cover projects with crypto-assets whose value does not exceed USD 5 million, whereas the second tier covers projects between USD 6 million to USD 10 million. The final tier targets projects with assets over USD10 million.
The Asian Blockchain and Cryptocurrency Association (ABACA) will also create a code of conduct and work closely with CEZA, reporting any activities which step outside the required set of acceptable operating procedures as outlined in the new laws.
CEZA has already given the green light to 19 exchanges to commence operating. The official body has expressed a desire for innovation to flourish in the Cagayan Economic Zone, but under regulations which have been introduced in order to control what is seen by the Philippines government as a volatile industry.
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