Dubbed Project CBDCPh, the pilot will test the use of CBDCs for large-value financial transactions on a 24/7 basis across a limited number of financial institutions.

The SEC decided to launch a second round of public consultation on proposed ICO rules as interested parties asked for more time to study the proposal.

The legislation was meant to be released by the end of 2018.

Among other things, under the draft rules, all tokens issued in ICOs would have been considered securities, unless the Regulator could prove otherwise.

ICO issuers would also be required to be incorporated in the Philippines and foreign corporations would also have to have an office in the country.

The draft rules also listed the types of documents and disclosures applicants would have to submit, including a code audit report issued by an independent code auditor.

Tokens issued during an ICO should also be registered with the SEC and "necessary disclosures need to be made for the protection of the investing public".

The SEC is now inviting banks, investment houses, the public and other interested parties to share their views and comments on the proposed guidelines, which will be revised based on the feedback received.

The deadline for comments is 15 January 2019.

The regulator explained that it will consider all tokens issued in ICOs as securities, unless the issuer can prove otherwise.

The SEC stated that Regulators of ICOs conducted in the Philippines often claim that their tokens are not securities and therefore do not fall under the agency's jurisdiction.

However, the regulator believes that allowing this would be "dangerous to the investing public" who would be left without any recourse if the project turns out to be a scam.

"Therefore, 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."

Further, under the draft rules, companies registered in the Philippines looking to run an ICO would have to submit an "initial assessment request" to the SEC at least 90 days ahead of the issuance.

The application should include Details of the project team, a review of the ICO proposal and its credibility as well as a legal opinion from a third-party explaining why the token is not a security.

The SEC will then review the request within 20 days, which can be extended up to 40, and provide a report on whether or not the ICO token is considered a security.

The draft rules also explain that the ICO Regulators can continue with their project even if the tokens are deemed securities, provided they complete a registration process and obtain the SEC's approval before any token sale.

The SEC also said that ICOs may be exempted from registration if the tokens are to be distributed to no more than 20 people or will be limited to institutional investors.

The regulator is inviting banks, investment house, the investing public and other interested parties to submit feedback by 31 August.