By: Steven Anderson – The Currency Analytics | July 9, 2018
The Philippine authority of the government-owned economic zone is setting new regulations for the cryptocurrency exchange. The rules also include the prerequisite for every crypto exchange to at least invest US$1 within the 2-year period. It was the reported that 60 applications so far have been filed.
The Cagayan Economic Zone (CEZA) of the Philippines’ action is crafted to safeguard all of their crypto investors. The government-operated zone also said that they would be welcoming 25 new cryptocurrency exchange companies, as revealed by the announcement released on its website. The Economic Zone is aiming to become the hub for future financial technology investments.
Raul Lambino, the Administrator, and CEO of the CEZA told newswire that the zone is still in its process of creating regulations that aim to protect every investment in cryptocurrency. He also said that the Philippine authority would remain focused in the checking the integrity and probity of the companies who are planning to launch their initial coin offering in the Philippines. Lambino also added that these companies should comply with all the regulations and needs to be registered to CEZA.
Previously, the Cagayan Economic Zone Authority announced that it would allow ten crypto exchange companies to reap the benefits of their tax issuance while generating employment. Lambino also explained that CEZA is about to license ten new cryptocurrency exchange platforms. He also clarified that each of the firms could have the flexibility to go into the exchange, initial coin offering or cryptocurrency mining. Lambino also highlighted that these ten newly licensed crypto exchange firms should perform their fiat money and virtual currency offshore to prevent from overstepping the Philippine regulations.
From the report and the statement given by Lambino, the number of crypto license issuance was revised and resulted to 25. Lambino explained that CEZA will now limit its license issuance to 25. Although the economic zone will only provide 25 licenses, each of the firms can have the chance to have 20-30 sub-licenses for both the brokers and the traders.
According to the CEO of CEZA, all the companies with an ICO needs to protect each user against the possible risk of scams. He also noted that regulations would not consent Ponzi schemes. The central bank of the country is currently reviewing all the applications filed from interested operators to launch an exchange firm in the country. During the recent television interview, the Director of the country’s central bank emphasized the benefits of using bitcoin as convenient and quick monetary instrument.
Featured image from The Currency Analytics