2018-8-3 15:40 |
On Thursday, August 2, the Philippine Securities and Exchange Commission (SEC) published a draft Memorandum Circular that would govern initial coin offerings (ICOs) in the country. In its proposed rules, SEC stated that all tokens issued through ICOs are to be presumed securities unless the issuer proves otherwise. The proposal is now open for public feedback.
The Process of Creating ICOs in the CountryThe draft memorandum specifies that the company will have to submit an application to the authorities more than 90 days prior to “start of the pre-sale period.” The application requires numerous pieces of information such as a detailed description of the project including the token distribution plan, certification of incorporation, the CV of all team members including photographs, NBI clearances, and proposed whitepaper. More importantly, it also requires an independent third party legal opinion to explain why the token is not considered a security.
If the token issuer is a foreign corporation, it will have to create a branch office in the Philippines.
As per the proposed rules released by SEC, investors might not be able to make correct judgments as to whether an ICO token is a security. So in order to protect the investing public against scams, SEC states:
“Therefore, the SEC will put the burden of proving that the tokens issued through an ICO in the hands of the proponents by presuming that the tokens are securities unless proven otherwise.”
Advertising the ICO TokensThe issuer of the tokens can advertise the whitepaper and post relevant information and advertisement on its website, social media, etc. However, the advertisement must contain a balanced description of the returns, prominent statements of warnings, a realistic impression of all fees and charges, and other forecasts based on past performances.
SEC also suggests that all advertisements should be easily and clearly understood by the target audience. The advertisements should also be clear and helpful to the audience. In addition to this, the content of the ads must be consistent with the proposed whitepaper. Ads with false, deceptive or misleading content are prohibited under the law.
The “Rules and Regulations Governing Initial Coin Offerings,” as it is called, shall come into effect 15 days after publication in two newspapers of general circulation.
Philippine Crypto Law to Consider All ICO Tokens as Securities was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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