The Philippines SEC issued a draft of rules regulating how companies can legally raise funds through ICOs. The draft awaits public feedback before it becomes official regulation.
By default, all tokens are considered securities according to these new rules: “the SEC will put the burden of proving that the tokens issued through an ICO in the hands of the proponents by presuming that the tokens are securities unless proven otherwise."
Another rule requires companies registered in the Philippines planning to perform a token sale to have to submit an initial assessment application to the SEC at least 90 days ahead of the issuance. The application should include details of the project’s team, a review of the ICO and its credibility, and a legal opinion from a third party.
Even if the SEC decided that proposed tokens are securities, a project can still go on as long as its team completes a registration process and obtains approval from the regulator. If the project targets a maximum of 20 people or institutional investors, it could be exempted from such a registration procedure.