The Philippine Securities and Exchange Commission (SEC) has issued a comprehensive set of guidelines to regulate the cryptocurrency market, including initial coin offerings (ICOs), token sales, exchanges, and related businesses. These guidelines aim to enhance investor protection and promote transparency in the rapidly growing digital asset space.

Under the new rules, entities conducting ICOs, marketing them, or selling tokens in the Philippines must file a disclosure document with the SEC at least 30 days prior. This document should provide detailed information about the offeror, issuer, cryptocurrency asset, associated risks, underlying technology, and potential risks.

Cryptocurrencies classified as securities will require a registered prospectus approved by the SEC before public offerings. ICOs may also fall under this requirement if they constitute an offer of securities under the Securities Regulation Code (SRC). Non-compliance can lead to penalties, fines, and imprisonment.

These guidelines will take effect 30 days after their publication in two newspapers. They represent a significant step towards regulating the cryptocurrency market in the Philippines and ensuring investor protection.

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