In the Philippines, the ICO is halted by the Security and Exchange Commission
The Philippines Securities and Exchange Commission filed a cease-and-desist order against four organizations and an operator running Initial Coin Offerings(ICO), indicating securities registration regulations, a newly published document reveals.
The order, dated Jan. 9, 2018 and posted on the agency’s website today, calls four affiliated companies – Black Cell Technology Inc., Black Sands Capital Inc., Black Cell Technology Limited and Krops – as operators of the KropCoin token sale, requiring to sell “the world’s first agriculture marketplace crypto equity ICO.”
The document also recognizes Filipino resident Joseph Calata as a founder or executive of all four companies.
All four of the companies declare their connection with the KropCoin token, which the filing notes are made on the Ethereum network.
While ICOs are not regulated within the country, the SEC’s Enforcement and Investor Protection Department (EIPD) declares that:
“There is substantial evidence that [the companies] are selling or offering securities in the form of KROPS Tokens and/or Kropcoins to the public, in the Philippines, without the necessary license from the Commission.”
The EIPD filing notes that the four companies have five days to file an appeal of the order, and can have a hearing within 15 days if they do. The SEC then has a further 10 days to resolve or reject the appeal; otherwise, the cease-and-desist will be automatically lifted.
EIPD filing notes can be investigated within 15 days as four companies have five days to submit an order. The SEC still needs 10 days to resolve or reject the appeal; Otherwise, stop and skip will be automatically removed.
Calata and the four companies might be allowed to resume the token sale if they register with the SEC and receive a license to sell securities in the country.