The Philippines government announced its plans to admit up to 10 blockchain cryptocurrency related companies to operate in the Cagayan economic region, a special economic zone in Cagayan Province, northern Luzon, in the Philippines. This step will allow the Philippines to create new employment opportunities for local citizens and take advantage of tax perks.
According to a report, the companies will be the first blockchain and crypto-related firms to operate legally in the country after the Cagayan Economic Zone Authority (CEZA) set-up a Fintech hub with the aim of creating an Asian “silicon valley”. CEZA is a state-owned corporation that is responsible for managing the Cagayan special economic zone and Freeport.
Raul Lambino, chief of CEZA said that they will allow cryptocurrency exchanges, mining and ICOs. Lambino also said that crypto-to-fiat and fiat-crypto exchange transactions should be managed separately, to avoid infringing on Philippine laws and regulations. He commented:
“We are about to license ten platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, and Koreans. They can go into cryptocurrency mining, ICOs or they can go into exchange.”
CEZA is hoping to build a blockchain and Fintech University which will help provide skilled employees that will work in these new companies. Moreover, CEZA will call for companies to invest at least $1 million over a period of 2 years and pay up to $100,000 in the form of license fees.