Topic: Cryptocurrency as Securities in Philippines (Read 146 times)
Well now cryptocurrency is important in the philippines and now the Philippines has been in the process of decentralizing the crypto so we just wait until the philippines enter into a currency and for me the philippines are more likely to bother with bitcoin so it will not be difficult to enter bitcoin cryptocurrency in the Philippines and now the crypto currency as important in the Philippines because it is closely related to the philippines and cryptocurrency.
The Philippines’ SEC is working on a regulatory framework for cryptocurrencies/ICOs, but I don't think they have classified Bitcoin as a security, licensed exchanges, recognized Bitcoin as a medium of exchange/remittances.
Some ICO tokens might be considered as securities and would have to comply with Philippines’ SEC, like what happened with the Krops ICO and couple of days ago they also released a statement that cloud mining contracts would be classified as securities.
But Bitcoin as security, there is investment of money, but no investment contract, although there is expectation of profits, it is based on market forces since there is no common enterprise. I guess I deviated a bit from the topic, but the point is some cryptocurrencies/ICO tokens will be treated as securities, but Bitcoin isn't classified as a security in Philippines and if they do so they would be the first.
http://www.sec.gov.ph/advisory-on-cloud-mining-contracts
Quote
“The direction is for us to consider this so-called virtual currencies offerings as possible securities in which case we will apply the Securities Regulation Code,” Aquino was quoted as stating. We have seen particularly in the social media sites that there are offers of initial coin offerings, most popular of which, of course [are] bitcoin and Ethereum…but [there are] new ones which may be considered as securities.
Some ICO tokens might be considered as securities and would have to comply with Philippines’ SEC, like what happened with the Krops ICO and couple of days ago they also released a statement that cloud mining contracts would be classified as securities.
Quote
Under Rule 26.3.5 par. 4 of the 2015 Implementing Rules and Regulations of the Securities Regulation Code (Republic Act 8799), an investment contract has been defined as a contract, transaction or scheme (collectively “contract”), whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others.
Applying the Howey Test as discussed by the Honorable Supreme Court in Power Homes Unlimited vs. SEC (G.R. No. 164182, February 26, 2008), a cloud mining contract is an investment contract falling within the purview of the term “securities” as defined by law. First, there is investment of money because an investor is expected to part with his hard-earned money in order to enter into these contracts. Second, there is an investment in a common enterprise because the party soliciting investments pool the funds collected to purchase mining equipment for use in the profit-making activity. Third, there is expectation of profits because the investor is given the promise of a return in the form of fiat currency or cryptocurrency. Lastly, the profits are generated from the efforts of others because the cloud mining company undertakes to perform all the profit-generating activities and distributes all the profits to all investors after deducting mining costs.
Applying the Howey Test as discussed by the Honorable Supreme Court in Power Homes Unlimited vs. SEC (G.R. No. 164182, February 26, 2008), a cloud mining contract is an investment contract falling within the purview of the term “securities” as defined by law. First, there is investment of money because an investor is expected to part with his hard-earned money in order to enter into these contracts. Second, there is an investment in a common enterprise because the party soliciting investments pool the funds collected to purchase mining equipment for use in the profit-making activity. Third, there is expectation of profits because the investor is given the promise of a return in the form of fiat currency or cryptocurrency. Lastly, the profits are generated from the efforts of others because the cloud mining company undertakes to perform all the profit-generating activities and distributes all the profits to all investors after deducting mining costs.
But Bitcoin as security, there is investment of money, but no investment contract, although there is expectation of profits, it is based on market forces since there is no common enterprise. I guess I deviated a bit from the topic, but the point is some cryptocurrencies/ICO tokens will be treated as securities, but Bitcoin isn't classified as a security in Philippines and if they do so they would be the first.
http://www.sec.gov.ph/advisory-on-cloud-mining-contracts
Investopedia defines security as: A security is a fungible, negotiable financial instrument that holds some type of monetary value. It represents an ownership position in a publicly-traded corporation (via stock), a creditor relationship with a governmental body or a corporation (represented by owning that entity's bond), or rights to ownership as represented by an option.
I define security as: coin that gives dividends or kickbacks.
Pretty basic breakdown, and if you ask me, for the most part there won't be a lot of coins left in a couple of years because of this regulation crackdown.
I define security as: coin that gives dividends or kickbacks.
Pretty basic breakdown, and if you ask me, for the most part there won't be a lot of coins left in a couple of years because of this regulation crackdown.
Until now I think and I have not seen any banks that want to receive bitcoin, but for a moment there must be an opportunity for bitcoin received.
I do not think bitcoins are the same as stocks, and I think bitcoin is better for investment because it promises big and fast profits from rising prices.
copper member
Activity: 2800
Merit: 1179
Leading Crypto Sports Betting & Casino Platform
It is not appropriate to tag the cryptocurrency as securities for it is not security, didn't they know the meaning of currency in the name itself, CRYPTOCURRENCY? They are currency, not a security!
I think so too, that bitcoin is like a stock and is perfect for investment because it has a price that tends to go up, and it's very profitable.
in my country Cryptocurrency and bitcoin is considered as securities. does this mean its the same as stocks? and what is actually a security?
source of my topic : http://business.inquirer.net/245535/cryptocurrency-as-security
source of my topic : http://business.inquirer.net/245535/cryptocurrency-as-security
Jump to: