The Securities and Exchange Commission in the Philippines has unveiled the regulation for initial coin offering.
According to the document, the authority proposes that ICO tokens should be considered as the securities unless issuer porves otherwise. SEC will seek the community feedback and only then new rules may come into force.
At the same time, local ICO holders mainly say that their tokens are not securities and thus are not subject for SEC's supervision. Meanwhile, the Commission believes that it would be too risky to enable investors to classify tokens for their own, especially given that they cannot detect ICO scams without sufficient resources.
The proposed rules read the companies that plan ICO will have to file an application for the initial assessemtn with the Commission.
"All ICOs conducted within the Philippines or by Philippine startups or corporations shall be required to undergo an initial assessment by submission of initial assessment request and attached documents (including the proposed whitepaper) wherein said startup or corporation shall have the burden to prove that the tokens are not security tokens," according to the document.
Notably, the companies that held ICO before the rules come into force will have to ask for the initial assessment within a 3-month period.
The determination on the requested initial assessement is to be announced in 20 days upon receipt of complete documents.
It is worth mentioning, ICO that wil be issued to up to 20 people or a small number of institutional investors can be released from the registration.