PH finance regulatory body propose ICO rules
In its continuous efforts to boost cryptocurrency trading in the Philippines, the country’s financial regulatory body recently proposed rules for companies planning to introduce a coin through Initial Coin Offerings or ICOs. ICO is a process used by investors to collect funds by selling shares of digital assets.
Crypto trading startups have to follow PH regulations
The Securities and Exchange Commission (SEC) last August reportedly proposed rules for investors who want to introduce a digital token as an investment in the Philippines, an article of The Manila Times recently reported. SEC also allows cryptocurrency exchanges to operate in the country as trading platforms, however, Commissioner Ephyro Luis Amatong stressed the need to regulate such startups.
Basic ICO process
Introducing a digital asset through ICO is a rigorous process, especially for investors who are committed to making contributions to the blockchain technology by offering a convenient alternative to fiat currency. StartupDigest founder Chris McCann offered some basic steps for people who want to introduce a cryptocurrency through ICO:
• Determine the token’s purpose and if you’re really using ICO to raise funds instead of other traditional ways to fund a project.
• Put all your planning into digital print to enlighten potential investors about the nature of your project. This is the time you publicize your plans through whitepaper, websites, communications, and token design.
• Guide people to register to your ICO by giving all the details they need to know before the actual ICO. You may want to create a series of video clips to guide participants through your project.
• Prepare your whole team during the ICO day and ensure that participants will not have a problem with registration. End the ICO by broadcasting it through live stream feeds.
• Notify participants on where to find their tokens, and what exchanges the tokens will be enlisted.
The detailed ICO guideline written by McCann with the help of industry experts was originally published in Medium.
In the Philippines, investors conducting ICO are initially required to submit details of the offering for SEC to figure out if it’s a security or not. Moving forward, startups need to be incorporated in the country and establish a physical office. SEC will conduct system and infrastructure inspections as part of the process. Commissioner Amatong noted that fintech through ICO made it easier for startups to raise funds.