Philippines allowing the development of Cryptocurrency companies in economic zone

A government official for the Philippines has announced on Wednesday that they are going to allow 10 cryprocurrency companies to operate in the Cagayan Economic Zone.

Raul Lambino, chief of the Cagayan Economic Zone Authority (CEZA), told Reuters.

“We are about to licence 10 platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, Koreans. They can go into cryptocurrency mining, initial coin offerings, or they can go into exchange,”  

The companies will be the first of there kind to do business within the Philippines, this goes against the grain of many regulatory bodies in neighboring countries which have tried to reign in cryptocurrency trading.
However the exchange of fiat currency to cryptocurrency is required by law to be done offshore in order to avoid breaking any Philippine regulations.
The 10 businesses are each required to provide at the very least $1 million in investment over a two year period and pay licencing fees limited to $100,000.
On the flip side the regulators of the Cagayan Economic Zone will seek to develop a blockchain and Fintech university to provide the businesses with an appropriately skilled workforce.

 

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