The Philippine economic zone, Cagayan Economic Zone Authority (CEZA), has officially appointed Asia Blockchain and Crypto Association (ABACA) to help CEZA create and enforce its own rules among its members.
Under this SRO model, CEZA will still retain its role as the overall regulator and will still be able to suspend members of the said organization if it fails to enforce regulations within a certain time period.
ABACA is expected to monitor compliance and report any breach, violations, or any matters relating to CEZA Fintech and Offshore Virtual Currency Exchange Rules and Regulations (FTSOVCERR) to the economic zone using a cloud-based system. CEZA Administrator and CEO Sec. Raul Lambino said,
“The SRO model allows industry players to police its own ranks, while also promoting and protecting the interests of cryptocurrency investors. The rules will remain stringent in assessing the ethics and integrity of companies eyeing to launch their initial coin offering (ICO) in the country.”
The organization will include entities that are doing business in the Cagayan Economic Zone and Free Port (CEZFP). Similar to PADCDI, ABACA is a blockchain association in the Philippines that serves as a self-regulatory organization (SRO), which aims to foster emerging blockchain technology.
This is but one of many in a series of collective efforts led by the Bangko Sentral ng Pilipinas, the Anti-Money Laundering Council, the Bureau of Internal Revenue, and the CEZA, to develop clear rules and regulations to protect both the private and public sectors against potential risk while investing in crypto.