Philippines Authorities Target $67 Million On Cryptocurrency Exchange Licenses
The Philippines has joined a growing list of countries looking to generate some form of income from the burgeoning cryptocurrency market. The country’s top authority in charge of the Cagayan Special Economic Zone and Freeport is planning to issue licenses at a fee, to cryptocurrency exchanges operating in the country.
The regulator has already granted its first operation license to a Hong Kong-based crypto exchange as part of the latest push. Golden Millennial Quickpay Inc. is now set to launch a cryptocurrency exchange in the country.
Upon issuing 25 principle licenses, the agency should be able to generate $67 million on charging $360,000 for a principal license. A regular permit will go for $85,000. The regulator is yet it clarifies the difference between the two licenses.
In addition to the licensing fees, CEZA will also generate additional income on cryptocurrency exchanges handing over 0.1% of the value of each transaction that happens in their crypto trading platforms. The more the transactions, the more income the agency is set to generate from the business.
CEZA has already received 70 applications underscoring willingness from companies to pay in order to operate in the country. In addition to the licenses, cryptocurrency exchanges also have to apply for a Certificate of Registration and register with Anti Money Laundering Council Secretariat.
The Philippines is one of the few countries that has been supportive of cryptocurrency related businesses even as other countries continue to pass legislation and regulations designed to stifle growth. It now appears the government remains confident of the industry’s ability to be a reliable source income in the form of taxes.
In addition, all licensed cryptocurrencies companies will have to invest $1 million locally within two years of operation. The companies will also have to maintain a back office in the country a requirement expected to create jobs for people.
Authorities hope to convert CEZA into a fintech hub having already committed $100 million for construction purposes.
“Our goal is to push the logical progression of these technologies into the mainstream, so that transactions that are mediated by them will be fail-state, will be secured, and will be easier and faster. We will have state-of-the-art technology to lessen the risks of online transactions, and also to prevent unlawful activities such as money-laundering and funding for extremist objectives,” said CEZA CEO Raul Lambino.