Philippine Association for Digital Commerce and Decentralized Industries (PADCDI) focuses on self-regulation as it held its third general assembly on July 25 in Makati City.
PADCDI is a non-profit organization that aims to promote blockchain and decentralized technologies here in the Philippines and is also aiming to be a self-regulatory organization (SRO) by providing guidelines on responsible adoption of these technologies.
Cecillia Mueller Chen, CEO and primary author of the Code of Conduct for Crypto Valley Association (CVA), an SRO for the blockchain community in Zug, Switzerland, provided insights on how CVA is growing the blockchain community as an SRO and how they have established a link with FINMA, a Swiss government body responsible for financial regulations.
Chen’s presentation stressed regulations for token classification, know your customer (alternatively know your client or ‘KYC’) and anti-money laundering (AML). She discussed that a CVA member company seeking to run a clean ICO must go to FINMA to confirm a token classification and get a no-action letter to protect themselves from criminal liabilities, subject to FINMA’s ruling. She also encouraged local companies to have their KYC done by a trusted third party entity like Unionbank.
Self-regulation is most useful when there are still grey areas in the industry, as it increases market discipline. PADCDI is positioning itself be the self-regulating body for the local blockchain industry. Chen added that self-regulation is the way to move forward and grow the industry, thus she encouraged PADCDI to constantly liaise with the government agencies such as BSP, SEC, and BIR, and set up a regulatory framework for this budding industry.
“Starting with a code of conduct is good and asking for members to actually accept that they abide to it.” – said Chen when asked on how and where should a self-regulated organization start.
PADCDI created a code of conduct that is patterned after the Australian Digital Commerce Association (ADCA). You can view PADCDI compliance document here.