CEZA’s Bold Move into Cryptocurrency

In an exciting turn of events for cryptocurrency enthusiasts and investors alike, the Cagayan Economic Zone Authority (CEZA) in the Philippines has rolled out the welcome mat by granting provisional licenses to three cryptocurrency exchanges. This initiative, reported by the Manila Times on July 10, is expected to pull in around $3 million in investments. Not too shabby, right?

CEZA: The Gatekeeper of the Economic Zone

CEZA, a state-owned entity, is the fine folks responsible for managing the Cagayan Special Economic Zone and Freeport operations. Actually, they’re kind of a big deal. Back in April, the Philippine government announced plans to permit up to 10 blockchain and cryptocurrency companies to set up shop within this zone. The aim? To create jobs and give a much-needed jolt to the local economy. Because who doesn’t love a good job boost?

Costs and Commitments: What Companies Need to Know

CEZA isn’t just handing out licenses like candy on Halloween. They’ve got a much stricter vetting process. According to deputy administrator Raymundo T. Roquero, companies must cough up a cool $1 million as part of their commitment over two years, plus a lovely little $100,000 in license fees and an application fee of the same amount. Oh, and let’s not forget the additional $100,000 for application programming integration (API). Talk about a hefty price tag!

The New Kids on the Block

Speaking of those thrilling new licenses, two of the approved platforms hail from Hong Kong while the third makes its debut from Thailand. These companies, which Roquero describes as offshore, have pledged their commitments. For instance, GMQ has plans to establish its infrastructure in Sta. Ana, Cagayan, with a two-year incubation period before it ramps up operations in Manila.

Cutting Edge Regulations

So why are companies keen on setting up in this economic zone? Roquero suggests it might be due to the fact that CEZA is the first entity to provide comprehensive rules and regulations for cryptocurrencies. And with 70 companies already eyeing operations in the zone, the allure of a structured environment is obvious.

Philippines Central Bank Shakes Hands with Crypto

But wait, there’s more! Earlier this month, the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, also got in on the action by approving applications from two more crypto exchanges. Virtual Currency Philippines, Inc. and ETranss received the nod as platforms that allow them to morph Philippine pesos into virtual currencies, making the crypto landscape even more inviting.