Philippines Regulator Aims to Reap $67 Mln by Issuing Crypto Exchange Licenses

Philippines Regulator Aims to Reap $67 Mln by Issuing Crypto Exchange Licenses

The financial authority governing the Philippines CSEZ (Cagayan Special Economic Zone) as well as Freeport, is aiming to reap an amount of $67 million by issuing licenses to cryptocurrency exchanges.

The CEZA (Cagayan Economic Zone Authority) announced on Tuesday, July 10, that it has approved the request of a Hong Kong-based crypto exchange to grant it a principle operation license, according to a report published by the Philippines’ government news agency.

The authority said the new license issuance is part of the total twenty-five principle operation licenses it is planning to hand out to crypto exchange platforms. In addition, each of these firms will be allowed to further issue “at least 4 regular licenses”, according to the release.

Raymundo Roquero, CEZA’s senior deputy administrator, said that the agency charges $85,000 for a regular license and a whopping $360,000 for a principle license. However, the main differences between the two licenses remain unclear.

Roquero added that the agency aims to earn a profit of $67 million or 3.6 billion pesos through its tiered licensing model.

According to the report, approved exchanges are also supposed to pay the authority roughly 0.1 percent of the total value of each transaction that takes place on their crypto exchange, on top of licensing fee.

Roquero said the agency has already received 70 applications and will continue issuing licenses in near future as six of the 70 applicants have already paid the licensing fee.

Crypto exchanges approved by the CEZA will also have to locally invest at least $1 mln within 2 years, and also have a back office in the country, as part of the license’s requirements, the report added.

The Philippine government had released a guideline for bitcoin exchange in 2017, but “received little interest” from exchanges in the time since. The central bank, however, granted the first licenses to two local crypto platforms in August last year.

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