With one of the fastest-growing cryptocurrency communities in the world, the Philippines is offering a model the global crypto community should embrace when it comes to drafting regulations, according to a local entrepreneur.
A Filipino entrepreneur and blockchain developer has called on the world’s cryptocurrency community to emulate his country’s model in crafting rules to regulate the nascent industry, Business Cloud reported.
The entrepreneur in question is Patrick Palacios, founder and CEO of crypto exchange LoyalCoin and digital reward programs provider Appsolutely. He was referring to the proposed cryptocurrency and initial coin offering (ICO) regulations put forward by the local Securities and Exchange Commission (SEC). The watchdog is encouraging the local blockchain community to submit suggestions and feedback before an “appropriate rule” on digital assets is finalized.
“These new rules mean the burden of proving the legitimacy of ICO tokens will be put in the hands of the issuer, and they will otherwise be deemed otherwise. This is a benchmark for the regulation of cryptocurrency. Beforehand, allowing certain kinds of behavior without regulation has put hundreds of thousands of investors at risk,” Palacios told Business Cloud.
He noted that the lack of rules on ICOs had left victims of fraud with few options to get back their cash. But the regulations proposed by the SEC would provide a deterrent against scammers and empower victims to fight back. He went on to add:
“Now I would urge other countries and regulators to follow suit and make regulation a truly global thing. South East Asian markets, in particular, should be following the Philippine model.”
Palacios also credited the government’s open-mind policy towards cryptocurrencies, as a result of which the Philippines boasts one of the fastest-growing digital currency communities in the world.
Members of the Philippine Association for Digital Commerce and Decentralized Industries (PADCDI) cheered the SEC draft upon its release last Thursday. Mariano Jose Diaz Villafuerte IV, CEO of CypherOdin and Botcoin, told Cryptovest this was the right step forward, adding that the SEC “is finally able to understand the different intricacies involved in an ICO not only for their own understanding but also to protect the consumer.”
“It’s important that we improve the market climate and raise standards for ICO projects. From the business model, value proposition, and ROI [return on investment] metrics,” he said.