CEZA has announced its intention to implement a code of conduct for crypto company locators so as to effectively regulate organizations within its jurisdiction.
In order to ensure that regulations in the Cagayan Special Economic Zone are kept in check, the Cagayan Economic Zone Authority (CEZA) has said that all crypto company locators will come under the code of conduct.
Various self-regulating organizations in the crypto sector will offer CEZA insights so as to facilitate the process.
CEZA secretary and administrator Raul Lambino announced this during a ceremony in which the authority granted Asia Premier International a principal offshore crypto license.
Crypto company locators, also known as Self-Regulatory Organizations (SROs), consist of crypto industry participants and are therefore in a position to offer worthwhile input.
Strict Licensing Measures
CEZA has put in place stringent measures for any companies looking to obtain the Financial Technology Solutions and Offshore Virtual Currency (FTSOVC) license.
More than 70 companies have applied for the licensing though there are only 25 slots available. Presently, the authority has already issued 17 principal licenses and two regular ones.
Among the background checks that the authority carries out is a confirmation that applicant companies have requisite technology and security measures to ensure smooth operations.
Therefore, according to Lambino, the code of conduct is “necessary as part of a broader strategy that will surely improve the effectiveness of regulation and market strategy” for CEZA with regards to companies within its jurisdiction.
The move is a unique occurrence seeing as a government agency has initiated the move to create a regulatory sandbox for companies that deal in emerging technologies.
More often than not, emerging technologies and the industries they disrupt, rarely run concurrently with existing regulations.
For this reason, a regulatory sandbox becomes necessary as it allows innovators to develop their technologies and test them out with a measure of freedom.