Cryptocurrency businesses and bitcoin exchanges have been outperforming the traditional financial platforms in user activity and popularity in the Philippines throughout the year 2018. The Cagayan Economic Zone Authority (CEZA) will support up to 25 cryptocurrency exchanges with friendly tax policies and regulations.
CEZA is owned and controlled by the government in order to manage the development of the Cagayan Special Economic Zone and Freeport. CEZA is planning to draft regulations that will work with an aim to protect cryptocurrency investors. The regulations will not entertain any kind of Ponzi schemes.
The authorities will cautiously check the integrity and working of companies planning to launch their Initial Coin Offering (ICO) in the Philippines. ICO has to be backed by assets. Such companies would have to get themselves registered with CEZA. CEZA has mentioned a condition that firms must be registered with Securities and Exchange Commission too.
The Filipino government-owned economic zone is drafting regulations for cryptocurrencies and the license is being limited to 25. The cryptocurrency exchanges willing to operate in CEZA will have to invest at least USD 1 million within 2 years.
CEZA is an economic zone in the northern part of the Philippines supported by the government of Philippines. In order to operate in CEZA, a rigorous and strict verification process by local financial authorities as well as CEZA will be required to be followed by the cryptocurrency exchanges before availing all the benefits regarding regulatory flexibility.
The exchanges will have to demonstrate that they are capable of investing an amount of at least $1 Million within CEZA and that they will be building new headquarters in the area. To facilitate the growing demand in the blockchain sector, the decision of CEZA and the local financial authorities to properly oversee and license cryptocurrency exchanges, like the traditional financial platforms, is the first step of the Philippine government ever since cryptocurrency was recognized as remittance method back in 2017.
The Government of Philippine was one of the first authorities to recognize digital assets as a form of money and develop the crypto sector.
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