A province of the Philippines, Cagayan, has just handed out licenses to three crypto exchanges via the Cagayan Economic Zone Authority (CEZA) in the hopes of securing at least $3 million with the deal.
Two exchanges were from Hong Kong according to the original article and one from Thailand. Seemingly the CEZA and Cagayan allows these businesses to acquire licenses with less hassle compared to their original jurisdictions for an investment of 1 million USD per license.
Golden Millennial Quickplay Inc. Ltd. (GMQ) is the first recipient of the license, while the other 2 are yet to receive it. The company that originates from Hong Kong will be able to offer BTC/USDT, XRP/USDT, ETH/USDT and EOS/USDT traiding pairs, but will be unable to offer Philippine Pesos to Bitcoin pairings as that would require a specific virtual currency exchange licence, which can only be acquired through the BSP. GMQ has signed an agreement with CEZA in front of the Philippine Congress during the GMQ Global Blockchain Summit.
The current license will allow the companies to operate a back office in the Cagayan province, but will focus on allowing trading for people outside of the Philippines. Applicants have to pass strict security audits and background checks, while also complying with AML and Data Privacy regulations.
The plan is to allow up to 25 exchanges to gain licenses, making it Cagayan a blockchain center for the Asian region similar to what Malta is for Europe currently. 70 companies have applied for the first CEZA licenses currently.
Featured image from Wallet Investor é