Philippines Allows 10 Crypto Companies To Operate On Its Territory
Philippines will permit 10 digital currency and blockchain companies to operate in its economic zone. This move will help bring forth improvements as they’d be able to benefit from certain tax reductions.
In an effort to create employment and increase the country’s economy, the Government of the Philippines declared that it is giving the green light to 10 cryptocurrency and blockchain companies to benefit financially by operating within its economic zone.
The companies which will be granted the license to operate in the country’s special economic zone are the first ones to receive such certifications. Also, they’ve received a wide flexibility for their procedures, as Raul Lambino, Chief of CEZA, explains:
“We are about to licence 10 platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, and Koreans […]; they can go into cryptocurrency mining, initial coin offerings, or they can go into exchange.”
Cagayan Economic Zone Authority (CEZA) is a Government-owned corporation which is in charge of supervision and management of the Cagayan special economic zone where said companies are permitted to operate.
It seems that CEZA has loosened its grip a bit, as the financial requirements for a company to set up shop in the Cagayan economic zone are far from being lenient. Interested companies must invest in a minimum of $1 million over a 2-year period and pay up to $100,000 in license fees.
On the other hand, the country’s overall stance on crypto- related matters appears to be quite favorable. Lambino also stated that CEZA is contemplating a possible setup of a blockchain and financial technology university within the economic zone to create a suitable workforce for the newly approved businesses.
The names of the 10 corporations were not revealed. It’s also worth mentioning that Philippines’ central bank has currently not authorized the use of digital currencies, citing that they are ‘open to misuse’. In addition to this, the country’s senator Leila de Lima also called for stricter judicial penalties for crypto-related crimes.
Philippines making great progress in trying to find the best possible way to regulate crypto- related businesses, which will eventually drive their economy forward.