Regulators in the Philippine Economic Area are drafting a law on cryptocurrency and plan to issue a license to allow cryptocurrency companies to do business. In addition, the Philippine supervisory authorities also require the cryptocurrency exchange to invest at least US$1 million in two years. According to a report by the Philippine News Agency, the Philippine Economic Zone has received more than 60 applications and it is expected that 25 agencies will obtain licenses in the first batch.
Drafting cryptocurrency regulations
The Philippine News Agency reported that the Cagayan Economic Zone Authority (CEZA) in the Philippines is developing rules to protect cryptocurrency investors.
The Cagayan Economic Zone Authority of the Philippines is the government holding company of the country. Its main responsibility is to manage and promote the development of the Cagayan Special Economic Zone and Freeport. According to the Philippine News Agency, the Cagayan Economic Zone Authority is focusing on building a financial technology investment center.
Raul Lambino, chief executive officer of the Cagayan Economic Zone Authority in the Philippines, said in a statement that the agency is developing regulations aimed at rigorously reviewing the initial issuance of tokens in the Philippines. ICO) The company’s credibility to protect cryptocurrency investors. In addition, all related cryptocurrency companies need to be in the Cagayan Economic Zone Authority in the Philippines.
The first batch of only 25 cryptocurrency companies licensed
According to initial reports, taking into account factors such as taxation and employment, the Cagayan Economic Zone Authority of the Philippines revealed that only 10 cryptocurrency exchanges will be authorized to obtain business operating licenses.
Raul Lambino said in an interview with Reuters:
“We will license ten cryptocurrency companies from Japan, Hong Kong, Malaysia and South Korea. These companies will be allowed to carry out cryptocurrency mining, initial token issuance, and exchange operations. But the currency is converted into virtual currency, It is necessary to exchange the currency of the virtual currency with the legal currency and it is necessary to go offshore to avoid violation of the relevant laws of the Philippines.”
However, at the Global Blockchain Summit held last week, Raul Lambino revealed that he would license 25 cryptocurrency companies. He explained in detail:
“Each cryptocurrency exchange needs to invest at least 1 million U.S. dollars (about 53 million Philippine pesos) and must also set up an office in the Philippines and be registered at the Philippine Securities and Exchange Commission. Although the Cagayan Economic Zone Authority of the Philippines only 25 exchanges will be licensed, but each exchange will receive 20-30 dealers and brokers’ sub-licensing.”
Raul Lambino emphasized that the reason why the Philippine regulators made these regulations was to prevent the Ponzi scheme from appearing. He explained:
“For companies that make initial token offerings, we must make it clear whether they have enough assets to support, because some projects may make false promises to let those unsuspecting investors be deceived.”
In addition, Raul Lambino further stated that some fraudsters have established a cryptocurrency exchange for only a small cost, while the Philippines does not intend to be a safe haven for fraudsters. Therefore, strict credibility verification is needed. The scam stopped outside the country.