Three cryptocurrency exchanges in the country’s economic zone have received provisional licenses. These were provided by the Cagayan Economic Zone Authority (CEZA), as reported by the Manila Times. The licenses’ issuance is expected to provide $3 million of investment for CEZA.
CEZA is a government corporation that manages the Cagayan Special Economic Zone and Freeport. In April, the Duterte administration noted about 10 blockchain and cryptocurrency firms will be allowed to operate in the economic zone. This is set to generate more jobs and increase the Philippine economy.
As part of the agreement, CEZA has obliged the crypto companies to invest not less than $1 million for two years and should pay $100,000 in license fees.
Raymundo Roquero, the CEZA deputy administrator for planning, business development, and planning, cited those granted licenses will have to pay an application fee of $100,000 (Php 5.35 million), along with a license fee of $100,000.
He added they have to undergo probity checks, as well as the application programming integration (API), amounting to an additional $100,000.
The formal license granting took place in Pasay City recently. Roquero noted the two of the trading platforms were from Hong Kong while the third was a Thailand firm.
The administrator added that although the license applications of other exchanges are approved, they have yet to be released. He reiterated that the offshore companies have committed to invest $1 million (Php 534.6 million) each.
GMQ seeks to create its infrastructure in Sta. Ana, Cagayan. It will have an incubation of about two years, enabling them to operate already in Manila.
Based on the agreed terms, licenses have to be renewed annually and the fees are “all non-refundable.” Manila Times reported about 70 firms have shown interest to operate in CEZA.
Roquero cited many companies want to operate in the zone because CEZA was the first to lay down its rules and regulations for cryptocurrencies.
In an early report, Bangko Sentral ng Pilipinas (Central Bank of the Philippines) has approved two applications of crypto exchanges such as Virtual Currency Philippines, Inc. and ETranss.
The exchanges are accredited platforms that enable the conversion of Philippine pesos to any virtual currencies.