SEC readies rules for cryptocurrencies
Credit to Author: Tyrone Jasper C. Piad| Date: Mon, 20 Jan 2020 16:20:29 +0000
The Securities and Exchange Commission (SEC) is eyeing to finalize a cryptocurrency framework by first half of the year, following the signing of amendments for real estate investment trusts (REITs).
SEC Chairperson Emilio Aquino, on the sidelines of signing of amended REIT regulations on Monday, told reporters that the regulator has a draft for the guidelines, along with the comments.
“At least [we’re finished with] REITs [already], we’re going there [next],” he said.
Aquino said that regulations should be in place soon to counter false advertisements about cryptocurrency in social media.
“We have to come up with regulations so that we will be able to run after them,” Aquino said.
Last year, SEC said that it was already reviewing the final guidelines for initial coin offerings and virtual currency exchanges (VCEs).
The Bangko Sentral ng Pilipinas, meanwhile, approved several VCEs to operate in the country last year, including Bitan Moneytech Co. Ltd., Fyntegrate Inc., ZyBi Tech Inc., Betur Inc., Rebittance Inc., BloomSolutions, ETranss, Virtual Currency Philippines Inc., Bexpress Inc., Coinville Phils. Inc. and ABA Global Phils. Inc.
SEC — along with the Department of Finance, Bureau of Internal Revenue, and Philippine Stock Exchange (PSE) — finally inked the final guidelines of REITs after more than a decade of discussion on Monday.
“Today, we deliver to our economy a powerful financial instrument to fund property development and drive the economy forward. We democratize wealth by opening access for thousands of small investors wanting to be shareholders in secure and profitable real estate projects,” Finance Secretary Carlos Dominguez 3rd said during the event.
REITs are alternative investment options apart from preferred shares and bonds, which allow medium- to small-scale investors to participate.
The stock company participating should have at least 33-percent public float and paid-up capital of P300 million. The REIT firm should pay out annual dividends of at least 90 percent of the distributable earnings.
Proceeds from the transaction should be reinvested in the domestic market — whether real estate or infrastructure — within one year.
Failure to comply with requirements could constitute delisting, PSE President Ramon Monzon said, which would subsequently require tender offer.
“After more than 10 years since the enactment of REIT Act, the REITs regulatory framework approved today (Monday) is a much-awaited and needed development in the capital markets,” Monzon said.
Apart from these guidelines, the regulators have also approved the tax-free transfer of assets and participation of insurance firms and pre-need companies.