Philippines Securities Regulator Orders Halt of ICOs

Rage Review : According to a newly released document from the Philippines Securities and Exchange Commission, the agency recently issued a prohibition order to four companies based on securities registration regulations. The agency pointed out in the document that there is a lot of evidence that these companies are selling or issuing securities in the form of KROPS tokens and/or Kropcoins to the public in the Philippines without obtaining the necessary permission from the SEC. However, the agency also stated that if the four companies register with the SEC to obtain permission to issue securities, they can resume their token sales activities.

Translation: Clover

The Philippines Securities and Exchange Commission has issued cease-and-desist orders against four companies and an initial coin offering (ICO) operator under securities registration regulations, according to a newly released document.

The injunction, issued on January 9, 2018 and published on the agency’s website recently, names four affiliated companies: Black Cell Technology Inc., Black Sands Capital Inc., Black Cell Technology Limited and Krops, all of which are operators of the KropCoin token sale, which they claim is “the world’s first crypto-equity ICO for the agricultural market.”

The documents also identify Philippine resident Joseph Calata as the founder or executive officer of each of the four companies.

All four companies claim to have close ties to the KropCoin token, which is built on the Ethereum network.

While ICOs are not regulated in the Philippines, the regulator’s Enforcement and Investor Protection Division (EIPD) said there was “substantial evidence that these companies are offering or selling securities in the form of KROPS tokens and/or Kropcoins to the public in the Philippines without obtaining the necessary licenses from the SEC.”

The EIPD filing states that the four companies have five days to appeal the order, and if they do, a hearing will be held within 15 days. After that, the Philippine Securities Exchange will have ten days to resolve or dismiss the appeal; otherwise, the injunction will be automatically lifted.

Calata and its four companies will be able to resume their token sales if they are able to register with the SEC and obtain permission to sell securities in the country.