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Manila, Philippines: a new blockchain association in the Philippines will help the government to regulate cryptocurrency companies and promote the development of the emerging technology platform.
The Cagayan Economic Zone Authority (CEZA) has appointed the Blockchain and Crypto Association (ABACA) of Asia as a self-regulating organization (SRO) under the CEZA SRO Rules and Regulations of 2018, approved from its Board of Directors. ABACA will make and enforce its rules among its members or associated persons.
CEZA remains as a general regulator under the SRO model. ABACA, for its part, will check and impose a code of conduct among its members and report to CEZA any violation of the rules and regulations of Virtual Offshore Exchange (OVCE).
"The Filipino blockchain and the crypto sector represent a historic milestone for this young and nascent industry.While establishing an SRO, we envisage more effective regulation of our sector operators.The SRO model also provides OVCE licensees with the possibility of contributing positively to the system.It is a welcome development for all, "said Ma. Juanita Cueto, Deputy General Manager of the Securities Clearing Corp. of the Philippines.
CEZA has emphasized that the collaboration with the localization companies fintech and the actors of the sector will help the government to obtain information and updates on the innovations in the emerging markets. The authority of the economic zone is using research on national and international trade standards to efficiently regulate industries and licensees under its jurisdiction.
"The SRO model allows industry players to oversee their own ranks, promoting and protecting the interests of cryptocurrency investors.The rules will remain rigorous in assessing the ethics and integrity of companies looking at the launch of their initial supply of coins (ICO) in the country, "said Sec. Raul Lambino, CEZA administrator and CEO.
This SRO model is modeled on more established markets in the United States and Japan. In the United States, the Regulatory Authority of the Financial Industry (FINRA) regulates thousands of brokerage firms, establishes best practices and settles disputes. It also has the power to suspend or prohibit brokers. The Japan Virtual Currency Exchange Association (JVCEA), a consortium of 16 cryptocurrency scholarships, has also formed an SRO association under the Financial Services Agency (FSA).
Lambino explains under the code of conduct, companies allow themselves to be responsible for penalties due to violations and non-compliance. He says that the code of conduct considers the evolving standards and specificities of the crypto and fintech sectors to create sound business practices, minimize the risks and incidence of fraud, prevent criminal activities and avoid data breaches and violations. operations. Lambino said:
"The Code of Conduct is necessary as part of a broader strategy that will surely improve the effectiveness of regulation and market strategy"
ABACA members include 20 licensed OVCEs and US, regional and local technology companies such as HatchAsia, Eplata and Hybrid Block.
ABACA is also taking steps to ensure bilateral relations with other blockchain and fintech centers to further strengthen the position and participation of the Philippines in the global arena.
CEZA may suspend or prohibit ABACA members if the OAD does not apply the rules within a specified period of time. ABACA will implement a cloud-based system to monitor compliance and provide CEZA with updated reports.
CEZA is moving forward with its goal of making the economic zone the future center of fintech businesses in the southeast and north-east Asia. The authority of the economic zone has already approved and issued provisional licenses for virtual offshore main swap to 22 companies engaged in one of the numerous blockchain ecosystem industries.
The new contracts will translate into at least 1.7 billion Php in investments over the next two years, including license fees and application fees, charged to the cryptocurrency companies that will manage virtual currency exchanges, engage in encryption and blockchain production. and initial money offered, among others.
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