The Philippine government is welcoming a lot of cryptocurrency exchanges overboard in a new economic environment.
Philippines will legalize the entry of 10 blockchain and cryptocurrency companies to operate in the Cagayan Economic Zone Authority (CEZA). It’s a government-controlled economic zone that is within an hour’s flight away from the likes of Hong Kong, China, and Taiwan.
The government aims to woo cryptocurrency companies to operate out of the economic zone with tax benefits. It is done to help generate employment opportunities locally.
The official confirmed that the government will also license – in effect legalize – the cryptocurrency firms in the special zone.
The companies will also be allowed to operate exchanges. offer initial coin offerings (ICOs) and engage in cryptocurrency mining within the zone, he added, stating:
We are about to license 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 embracive stance follows newly introduced rules by the CEZA in February. It allowed cryptocurrency companies to legally establish offices and facilities in the special zone. To gain a license, companies must invest at least $ 1 million in the zone over two years and pay up to $100,000 in licensing fees.
The Philippines’ central bank was previously known to be reviewing the applications of a dozen operators vying to register and launch cryptocurrency exchanges in the country as recently as December. It remains to be seen if these operators have since switched tact to register in the economic zone instead.
The Philippines became one of the earliest nations in the world to publish regulations for cryptocurrency exchanges. The deputy director of the central bank, appearing in a televised interview in October 2017, lauded the