The Philippines’ Securities and Exchange Commission said on Monday that it is developing new rules on cryptocurrency trading in the country. The approach is to prevent fraudulent ICO activities and protect the investors.
The rules will be ready by the end of this year according to Emilio Aquino, SEC commissioner in charge of enforcement and investor protection. They will be a response to hacking and scam threats recently experienced in crypto markets.
“Unfortunately, there have been a lot of cases where ICO promoters vanish into thin air. We don’t want that to happen here”.
The new rules will touch on registration and issuance of cryptocurrencies. They will also offer guidelines on ICOs about cybersecurity and crypto markets. They will also provide instructions on the eligibility of issuers, a technology used and financial literacy of investors.
ICOs are banned in China and cryptocurrencies are partially regulated in various countries around the world. However, Philippines’ SEC has not yet approved any public sale of cryptocurrencies. It is investigating unlicensed sellers.
The rules also come in the wake of increased interest and hype for cryptocurrencies in the Philippines. For instance, blockchain was the primary focus in the last Devcon Summit in 2017.