The Philippines-based security token exchange ADAX received an Offshore Virtual Currency Exchange (OVCE) license this month from the country’s regulators. There are only a handful of government licensed security token exchanges in operation across the world. Consequently, the news places ADAX in an exclusive class. These fully-licensed and regulated exchanges are seen as the natural evolution of the market and ADAX is now ready to offer services to the public.
Speaking on the newly achieved licensing, ADAX’s President Wojtek Kaszycki expressed his excitement. He explained that asset-backed tokens are unique. He also called these tokens “one of the most exciting developments for global financial growth in recent history.” Kaszycki also explained how ADAX functions as a cross-border investment vehicle that brings much-needed liquidity into the security token sector.
Enter Traditional Investment Firms
Up until recently, traditional investment firms were hesitant to enter the cryptospace due to a complete lack of regulations. These firms require a strong regulatory framework to participate in a market. Today, both businesses and governments are aware of the undeniable benefits of blockchain technology and there is a strong desire to integrate this technology into the financial sector.
Security Token Sector Goes Mainstream
Regulated security token exchanges such as ADAX fill that void and allow large firms to enter the cryptospace with confidence. This strategy is important when you consider that the entire market is on the verge of a corporate coin explosion. Specifically, large firms such as Facebook, JP Morgan, and Samsung all announced plans to either host native cryptocurrencies in the near future or build blockchains.
These corporate tokens require a different type of exchange to remain compliant. Both companies and investors benefit from this synergistic relationship. Investors gain more liquidity in the market, while corporations gain less risk.
Cagayan Economic Zone Authority
The ADAX exchange operates under the Cagayan Economic Zone Authority (CEZA). This sector of the Philippines has become one of the most influential crypto zones in the world. In May 2018, over 21 firms signed up to participate in this blockchain haven. These firms include ANX International, CoinBundle, and many more.
Analysts expect big things from CEZA in the future. Each firm pledged to spend over one million dollars over the next two years to develop the sector. In total, CEZA regulators expect thirty-two million in revenue generated from a combination of taxes, fees, and licensing costs.
Offshore Currency Exchange License – ADAX
Not surprisingly, every crypto exchange must obtain a license prior to operations starting. One of these aforementioned licenses is the Offshore Currency Exchange License. According to recent reports, there are just under fifty licensed crypto businesses currently operating in the Philippines. Most importantly, these licenses provide the Philippines with a new source of revenue.
The Philippines is the Right Spot for ADAX
You have to commend ADAX on the wise decision to base the operations out of Cagayan Economic Zone. This blockchain hub strengthens the entire sector and makes the Philippines a leading voice in the future development of the market. You can expect to hear much more from these developers as their exchange goes live.