Philippine Allows Crypto Businesses in Special Economic Zone

Philippine Gov’t to Allow Country’s First Crypto Businesses in Special Economic Zone

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  • The government of Philippine now allows cryptocurrency businesses in the special economic zone.
  • But warns that crypto exchange should be done offshore, to avoid going into conflict with the Philippine law.

Philippine: According to Reuters report on 25th April, the government of Philippine allows ten Blockchain and Cryptocurrency firms to run their operations in the Cagayan Economic Zone. The report showed that the ten firms are the first Blockchain and crypto-related firms to operate legally in Philippine after the Cagayan Economic Zone Authority (CEZA) created a fintech center with the goal of establishing an Asian “Silicon Valley”. CEZA is a state-owned corporation that manages the Cagayan Special Economic Zone and Freeport.

Raul Lambino, CEZA Chief said that CEZA would permit cryptocurrency exchanges, crypto mining, and ICOs:

“We are about to license 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.”

Raul emphasized the fact that cryptocurrency-to-fiat and fiat-to-cryptocurrency exchange transactions should be carried out offshore, so as to avoid going into conflict with the Philippine law. These companies are expected to generate employment in exchange for the tax breaks they will receive. The firms would also be required by CEZA to invest at least $1 million over 2 years and pay up to $100,000 in license fees. Raul also added that CEZA seeks to build a Blockchain and fintech university which would provide skilled employees for these new firms.

The Philippines Securities and Exchange Commission (SEC) had earlier this month issued an advisory on Crypto Cloud Mining Contracts, insisting that Cloud Mining Contracts be classified as Securities.

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