The Cagayan Economic Zone Authority of Philippines is expecting investment worth P3.6 billion or $67 million into the economic zone created for cryptocurrency firms. The authority has begun granting operating licenses for cryptocurrency exchanges.
Cryptocurrency Economic Zone
The Philippines government had announced the creation of a Special Economic Zone for cryptocurrency and blockchain startups to give the country a head start in blockchain technology. Companies operating from the Cagayan Economic Zone will be eligible to receive financial incentives as well.
The CEZA has begun the process for granting operational licenses to cryptocurrency exchanges. The total number of companies that will be registered in the economic zone is capped at 25 for the first year. On July 10, 2018, Golden Millennial Quickpay Inc. Ltd became the first fintech company to be granted license. The company has invested $1 million in CEZA and will also employ 5,000 workers. CEZA Senior Deputy Administrator Raymundo T. Roquero has confirmed that three companies have already received the approval to operate in the economic zone.
Roquero said, “The license was issued last week. They were the first, [along with two other firms]. These are all Hong Kong-based, while one is from Bangkok, Thailand. These are offshore companies with a capital investment of $500,000. They have a committed investment to us of $1 million each.”
Fintech and blockchain startups queue for CEZA license
CEZA Administrator and CEO Raul Lambino said,
“Our charter has put us in this perfect position to create this fintech hub that shall produce financial products relating to blockchain, cryptocurrency exchanges, initial coin offerings, payment solutions, cloud computing, big data, artificial intelligence, robotic advice and other fintech solutions. The CEZA by its involvement in this venture, will keep its commitments.”
The CEZA announced that it had received 70 applications but so far only three have been aproved. Another six applications are being verified. Roquero said he expects total investment in CEZA to reach $67 million within the first year. The regulator will issue 25 licenses in the first year and each accepted applicant will have to pay $350,000 as fee. Also each company will employ 500 workers.
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