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Three cryptocurrency trading platforms in the Philippines received temporary licenses from the Cagayan Economic Zone Authority (CEZA), reported Manila Times on 10th July.

As a result, CEZA expects to raise $ 3 million in investments.

CEZA is a state-owned organization that manages the Cagayan Special Economic Zone and Freeport affairs. Back in April 2018, the Philippine government revealed it will grant ten blockchain and cryptocurrency-based businesses to activate in the economic zone in order to launch new jobs and streamline the economy. To receive authorization, companies are required to pay $ 1 million during the first two years plus $ 100,000 for the license fee.

Here’s what Raymund T. Roquero, CEZA Deputy Administrator for Planning, Business Development, and Planning, claimed:

When they apply, they will pay an application fee of $100,000 (P5.35 million) [and a] license fee of $100,000. Then you go into probity checks, then application programming integration (API), which costs an additional $100,000.”

Licenses were offered on Tuesday in Pasay City. According to Roquero, two cryptocurrency exchanges are to be based in Hong Kong and the third in Thailand. He also mentioned that the other platforms’ requests have been approved and are due to be published.

These are offshore companies, and they have committed investments of $1 million (P534.6 million) each. GMQ intends to build [its] infrastructure in Sta. Ana, Cagayan…and will have an incubation period of two years, so they are already allowed to operate here in Manila.”

Licenses will need to be changed each year, while fees are “all non-refundable.” As reported by Manila Times, 70 businesses have applied to receive the license and activate in the Cagayan Economic Zone. Roquero believes companies choose to provide services here because “we are the first to provide rules and regulations for cryptocurrencies.

As previously reported by Coindoo, the Philippine Central Bank, Bangko Sentral ng Pilipinas (BSP) has approved this month applications of two virtual cryptocurrency exchanges, Virtual Currency Philippines, Inc. and ETranss. These have been authorized to convert pesos into digital currencies.

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