The Securities and Exchange Commission (SEC) plans to issue the proposed rules for initial coin offerings (ICOs) in the fourth quarter for possible implementation next year, a top official said over the weekend.
SEC commissioner Kelvin Lester Lee said the agency was preparing to release the proposed framework for the issuance of digital assets for public comments.
An ICO is undertaken by a cryptocurrency company to raise money to create a new coin, app or service.
The SEC started drafting rules governing cryptocurrency offering and trading as early as 2017, but this was delayed by the proliferation of scams and scandals.
It said while the agency was ready to issue the guidelines in 2022, it decided to again to delay the process following the collapse of Bahamas-based cryptocurrency exchange FTX, which was once the third-largest cryptocurrency exchange by volume with more than one million users.
The SEC said it wanted to review the rules again to ensure that proper safeguard measures are put in place to protect the investors.
It said it remains vigilant against companies offering cryptocurrencies and illegal securities and investments to the public while the draft rules are still being finalized.
SEC chairman Emilio Aquino noted an increase in the number of advisories issued by the agency against companies offering illegal securities to the public including overseas Filipino workers (OFWs).
It said to protect the OFWs, it signed a partnership with Department of Migrant Workers (DMW) to conduct regular seminars with OFWs, who are now being being targeted by scammers.
Meanwhile, Aquino said the SEC tightened its cybersecurity measures amid the recent hacking of various government agencies.
He said the SEC, which has the registration of all Philippine corporations, has been working with Department of Information and Communications Technology to improve its cybersecurity following an increase in hacking attempts against the agency.
