It was Bitcoin that had laid the foundation for a new era of digital money transaction. 2009 when the world saw Bitcoin surfacing, it was the same year when we got to know about Blockchain that was the underlying technology of Bitcoin and other cryptocurrencies. The Blockchain is that new kid in the town which has taken the world by storm. Being a decade old, this technology has carved a niche for itself and has disrupted almost all the business verticals. From healthcare to finance to supply chain management, Blockchain finds application everywhere.

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Philippines Announces The New Cryptocurrency
Regulatory Framework
It was Bitcoin that had laid the foundation for a new era of digital money
transaction. 2009 when the world saw Bitcoin surfacing, it was the same year
when we got to know about Blockchain that was the underlying technology of
Bitcoin and other cryptocurrencies. The Blockchain is that new kid in the town
which has taken the world by storm. Being a decade old, this technology has
carved a niche for itself and has disrupted almost all the business verticals. From
healthcare to finance to supply chain management, Blockchain finds application
everywhere.
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Despite paving the way to one of the biggest revolutions, Bitcoin and
cryptocurrencies got surrounded with apprehensions. People still doubt its
longevity and sustainability in the future. Many believe that there is little probability
that cryptocurrencies will not have a secure future. The primary reason for this is
cryptocurrencies lack regulation. There is no governing authority which controls
the flow of cryptocurrency transaction. Thus, making its usage doubtful.
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What is the reason that cryptocurrencies are
not gaining global acceptance?
Although we have seen the rise in the use of Blockchain application when it comes
to cryptocurrencies, then it has not become as popular as cryptocurrencies, and
the reason for accounting for the same is lack of regulatory authorities. Since there
is no governing body, cryptocurrencies can be put to use to illicit activities. Apart
from this, anonymity associated with cryptocurrencies further adds to the list of
reasons which makes it vulnerable. In case of fraud, it would be difficult to find out
the responsible person, since there is no ruling body, whom to contact becomes a
matter of concern.
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So, What Should be done?
Undoubtedly, cryptocurrencies have paved the way for a new era of financial
revolution, and it has made the transaction, faster and easier. Despite all this, the
lack of regulation makes it doubtful. With the help of regulatory authorities,
cryptocurrencies will have more regulation, thus garnering the trust of individuals
and investors.
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Many nations and companies have shown an inclination towards digital
currencies. ICOs have also become very popular and an excellent way for
investors to invest in the market. The Philippines is the latest addition to the list of
nations that are promoting the use of cryptocurrencies and has introduced a
regulatory framework for the same.
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What is the news?
The Philippines recently announced the formation of new regulations and
regulatory authority that will govern crypto assets. It has introduced a new set of
rules ruling Digital Asset Token Offering (DATO). As per the Cagayan Economic
Zone Authority (Ceza), this new regulatory framework will cover the acquisition of
cryptocurrencies which includes utility and security tokens. With this division, the
authorities aim to safeguard the interest of the cryptocurrency investors and at the
same time promoting the concept and usage of cryptocurrencies.
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What does this transformation entail?
As per the new regulation passed by the Philippines, all the DATOs should have
proper documentation related to cryptocurrencies. These documents will have all
the details pertaining to cryptocurrencies, issuer, project, certificate of experts,
accompanying advice. The token must be listed on the licensed Offshore Virtual
Currency Exchange (OVCE).
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As per the new set of regulations, the investment in digital tokens will be divided
into three tiers that represent the range of investment. Here is how the division will
look like:
1. One tier will include investments, and assets is not more than $5 million
2. The second tier will range between $6-$10 million
3. Third ties will have investments above $10 million
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This press release, however, doesn’t mention anything about ICO as it was
expected. As per the Philippines Securities and Exchange Commission (PSEC),
there needs to be regulation on ICOs so that it becomes a secured platform for
those who are willing to invest cryptocurrencies. PSEC issues an ICO regulating
documents in August 2018. As per them any agency who is ready to run an ICO or
selling ICO tokens to Filipinos must submit an Initial Assessment Request to the
regulating authority who will cross-verify the token security.
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This step by the Philippines showcases growing inclination of nations towards
cryptocurrencies and its strong future. With regulations coming in,
cryptocurrencies will become more secure and will have credibility, thus luring
companies and startups to participate in ICO or bring inventiveness in this division.
At the same time, it will pave the gateway for new developments.
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Conclusion
Cryptocurrencies are often considered as a bubble that will soon burst, it is
because of this reason that investors are hesitant to full-fledged invest in ICOs.
With regulations coming in and formulation of governing authorities, a favorable
ecosystem of growth for the investors will be created. Moreover, these regulations
will also ensure that digital currencies are not utilized for illicit activities, and
enhancing the credibility of cryptocurrencies and ICOs.
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Blockchain Council Certifications
You can check out our certifications, and kick start your career in the Blockchain
space today.
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● Certified Solidity Developer
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