The Philippines will allow 10 blockchain and virtual currency companies to operate in the Cagayan Economic Zone Authority (CEZA) to take advantage of tax perks while generating employment, Reuters reports.
“We are about to licence 10 platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, Koreans,” CEZA chief Raul Lambino told Reuters.
“They can go into cryptocurrency mining, initial coin offerings, or they can go into exchange,” Lambino said.
Although CEZA paved the way for digital asset exchange platforms by legalizing them in February, Lambino noted that to avoid regulatory issues, trades between fiat money and cryptocurrency must be conducted offshore.
Virtual currency companies willing to set up offices and facilities in the zone, are required to invest at least $1 million over two years and pay up to $100,000 in licence fees.
The economic zone regulator is also looking at putting up a blockchain and financial technology university in the economic zone to provide workers for the companies.
By Siranush Ghazanchyan