The Philippines’ Cagayan Economic Zone Authority (CEZA), owned by the government, is reported to be drafting cryptocurrency regulations. The authorities are also planning to restrict the number of issuing licenses to 25.
It has also laid down the requirement that each crypto exchange needs to invest at least around US$1 million within a span of two years. So far, the authority has reported that it has received around 60 applications from crypto companies.
CEZA which is a government controlled and owned corporation is responsible for managing the development of Freeport and Cagayan Special Economic Zone. According to the Philippine News Agency, CEZA is all set to become the center for financial technology investments.
CEO and Administrator Raul Lambino, CEZA said that the corporation is presently busy drafting cryptocurrency regulations which will safeguard individuals investing in cryptocurrency. In his statement this week he further mentioned that the regulatory authority will act quite stringently in crosschecking and probing the integrity of the firms who are geared to launch their initial coin offering (ICO) in Phillipines. These companies must be registered with CEZA.
In its initial decision, CEZA decided to allow 10 crypto firms to leverage its tax benefits while generating employment opportunities. These 10 crypto firms belonged to Hong Kong, Malaysia, Korea, and Japan. In his statement as reported by coindesk, Raul Lambino further added that the exchange of fiat money into virtual currency and vice versa needs to be carried out offshore so that infringing of Phillipines’ cryptocurrency regulations can be averted, according to Bitcoin News.
However, Lambino stated that the number of licenses has been revised to 25, during the Global Blockchain Summit that took place last week. He however clarified that although CEZA will issue only 25 licenses, every exchange will have around 20-30 sub-licenses for brokers and traders. As per reports, CEZA has received tentatively around 60 applications from various crypto companies so far.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]