The Philippine government will allow 10 Blockchain and cryptocurrency companies to operate in the Cagayan Economic Zone, Reuters reports April 25. The companies will reportedly be the first Blockchain and crypto-related firms to legally operate in the Philippines after the Cagayan Economic Zone Authority (CEZA) established a fintech hub with the goal of creating an Asian “Silicon Valley”. CEZA is a state-owned corporation that manages the Cagayan Special Economic Zone and Freeport. Chief of CEZA Raul Lambino stated that they will permit cryptocurrency exchanges, mining, and Initial Coin Offerings (ICOs): “We are about to licence 10 platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, Koreans. They can go into cryptocurrency mining, Initial Coin Offerings, or they can go into exchange.” Lambino stressed that crypto-to-fiat and fiat-to-crypto exchange transactions should be conducted offshore, in order to avoiding running afoul of Philippine law. Firms are expected to generate employment in exchange for the tax breaks they will receive. CEZA will also require the companies to invest at least $1 mln over two years and pay up to $100,000 in licence fees. Lambino added that CEZA is also looking to build a Blockchain and fintech university to provide skilled employees for the new companies. Earlier this month, the Securities and Exchange Commission (SEC) of the Philippines issued an advisory on cryptocurrency Cloud Mining contracts, demanding that they be classified as securities.
The Philippine government is encouraging blockchain and cryptocurrency firms to operate in its Cagayan Economic Zone, whose state authority has set up a financial technology hub, aiming to create an Asian version of Silicon Valley. The deal marks the first time such companies will operate legally in the country, and will involve cryptocurrency exchanges, mining operations and initial coin offerings. The 10 companies involved will have to create jobs in return for tax breaks, and they will have to invest 100,000 and pay $$1m in licence fees. A fintech and blockchain university may follow to help train employees.