Rules on Initial Coin Offerings

These (draft) Rules and Regulations Governing Initial Coin Offerings (ICOs) govern the issuance of security tokens or coins for ICOs through online electronic platforms (and does not cover other platforms, e.g. print media.) An excerpt of the coverage of the draft rules and its contents appear below.

Section 1. Applicability and Coverage. These Rules shall be known as the "Rules and Regulations Governing Initial Coin Offerings (ICOs)". These Rules shall primarily govern the conduct of ICOs wherein convertible security tokens are issued by start-ups and/or registered corporations organized in the Philippines, and start-ups and/or corporations conducting ICOs targeting Filipinos, through online platforms. Initial coin offerings conducted through other means or media other than online electronic platform is not within the coverage of these Rules; hence, the usual requirements under the SRC shall apply.

CONTENTS

  • ARTICLE ONE: GENERAL PROViSiONS 5
    • CHAPTER ONE: Definitions 5
      • Section 1. Applicability and Coverage 5
      • Section 2. Definition of Terms 5
  • ARTICLE TWO: INITIAL ASSESSMENT OFTOKENS 7
    • CHAPTER ONE: Initial Assessment Request 7
      • Section 3. Submission of Initial Assessment Request 7
      • Section 4. Contents of the Initial Assessment Request 7
      • Section 5. Description of the ICO Project 8
      • Section 6. Form ofthe Initial Assessment Request.. 9
    • CHAPTER TWO: Action on the Initial Assessment Request 9
      • Section 7. Review by the Commission 9
      • Section 8. Result of Review 9
    • CHAPTER THREE: Whitepaper 9
      • Section 9. Contents of the Whitepaper. 9
      • Section 10. Consistency of Whitepaper 11
      • Section 11. Access to the Whitepaper 11
      • Section 12. Power of the Commission to Require Amendment of the Whitepaper or other Documents Submitted with the Initial Assessment Request 11
  • ARTICLE THREE: QUALIFICATIONS AND DISQUALIFICATIONS OF ISSUERS AND ADVISORS 11
    • CHAPTER ONE: Qualifications and Disqualifications of Issuers 11
      • Section 13. Qualifications of Issuer 11
      • Section 14. Issuer with Principal Office Outside the Philippines 11
      • Section 15. Incorporation of Start-ups Conducting Security Token iCOs 11
      • Section 16. Disqualifications of Issuer and Team Members 11
    • CHAPTER TWO: Qualifications and Disqualifications of Advisors 12
      • Section 17. Qualifications of Advisors 12
      • Section 18. Disqualification of Advisors 12
  • ARTICLE FOUR: REGISTRATION OF SECURITY TOKENS 13
    • CHAPTER ONE: Registration of ICOs 13
      • Section 19. Submission of the Registration Form 13
      • Section 20. Contents of Registration Statement. 13
      • Section 21. Contents of the Prospectus 16
      • Section 22. Form of the Registration Statement 16
      • Section 23. Schedule for Ocular Inspection and System Walkthrough 16
      • Section 24. Deviation or Adjustment on the Planned Use of Proceeds 16
      • Section 2S. Granting ofthe Application for Registration 16
      • Section 26. Power of the Commission to Require Amendment to the Prospectus and Other Documents Submitted with the Registration Statement 16
      • Section 27. Rejection ofthe Application for Registration 16
    • CHAPTER TWO: EXEMPTION FROM REGISTRATION OF SECURITY TOKENS 17
      • Section 28. Eligibility for Exemption from Registration of Security Tokens 17
  • ARTICLE FIVE: ADVERTiSiNG 17
    • CHAPTER ONE: Allowed Advertising 17
      • Section 29. Allowed Media for Advertisements 17
      • Section 30. Contents of the Advertisements 18
      • Section 31. Form of Advertisements 18
      • Section 32. Ability to Keep Record 18
      • Section 33. Consistency with the Whitepaper and Other Documents 18
    • CHAPTER TWO: Prohibited Advertising 18
      • Section 34. Forms of Prohibited Advertising 18
  • ARTICLE SIX: Reportorial Requirements 19
    • CHAPTER ONE: Continuing Compliance to the Law and Rules 19
      • Section 35. Compliance with the Law and Rules 19
      • Section 36. Possible Non-Compliance with the Law and Rules 19
    • CHAPTER TWO: Ongoing Reportorial Requirements 19
      • Section 37. Annual Reports 19
      • Section 38. Quarterly Report. 19
      • Section 39. Other Interim Reports 20
      • Section 40. Submission of the Progress Report to the Commission 20
      • Section 41. Other Reports that may be ReqUired by the Commission 20
  • ARTICLE SEVEN: Miscellaneous Provisions 20
    • CHAPTER ONE: Events Triggering the Return of Funds to the Investors 20
      • Section 42. Return of Funds if the Soft Cap is not Reached 20
      • Section 43. Return of Funds if the Project is Abandoned Before Completion 20
    • CHAPTER TWO: Transitory Provisions 21
      • Section 44. Application on existing ICOs 21
      • Section 45. Registration of Existing ICOs 21
      • Section 46. Status of ICO Conducted Prior to Effectivity 21
    • CHAPTER THREE: Repealing Clause 21
      • Section 47. Repealing Clause 21
    • CHAPTER FOUR: Separability Clause 21
      • Section 48. Separability Clause 21
    • CHAPTER FIVE: Effectivity Clause 21
      • Section 49. Effectivity Clause 21
  • APPENDIX I: Initial Assessment Form 22
  • APPENDIX iI: Contents of the Prospectus 26

Document Details

Document Type: 
Authoring Country: 
Originating Country or Trade Block: 
Year of Document: 
2018
Date of Document: 
Thursday, August 2, 2018
Document Authors: 
Securities and Exchange Commission

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