Bill drafted for the office of Rep. Earlpe John M. Amante 1402

AN ACT REGULATING BITCOIN AND OTHER FINANCIAL DERIVATIVES CIRCULATING IN THE INTERNET

SECTION 1. Title. – This act shall be known as the “Internet Currency Regulation”.

         SECTION 2.  Declaration of Policy. – The Internet is producing a multivariate of technological production that is still unregulated in the republic.  More often than not, selling and buying of services is done through the use of bitcoin or other  financial derivatives.  To ensure economic protection and stability, the State will have to regulate the Internet buying and selling that is transpiring in the Philippine area of responsibility.

          SECTION 3. Definitions. – As used in this act, the following terms shall mean:

           (a)  Bitcoin – this refers to the currency that is being use right now in the Internet.

             (b)  Other Financial Derivative – this refers to other currency that is being used in the Internet.

              SECTION 4.  Regulatory power.  All matters related to Internet financial transactions will be under the Department of Finance.

          SECTION 5.  Penalty.  Companies and individuals operating without conforming to the rules and regulations set by the Department of Finance will be fined Two Million Pesos (P2,000,000) but not exceeding Five Million Pesos (P5,000,000).

Corporate officers such as the President, Vice-President, Corporate Secretary, Treasurer and General Manager shall be punished by prison mayor and its medium and maximum periods and a fine not less than One Million Pesos (P1,000,000) but not exceeding Two Million Pesos (P2,000,000).

            SECTION 6.  Repealing clause.  All laws, decrees, executive orders, proclamations, rules and regulations, or parts thereof inconsistent herewith is hereby repealed or modified accordingly.

                SECTION 7.  Separability clause.  If any provision of this act is held invalid or unconstitutional, the other provisions not affected hereby shall remain valid and subsisting.

               SECTION 8.  Effectivity.  This act shall take effect fifteen (15) days after its publication in at least two (2) national newspaper of general circulation.