In Philippines you can find beautiful beaches, snow-white sand and a very special economic zone that sets its own rules for the crypto world. Let's see what that means exactly:
_What is CEZA?_
The Cagayan Economic Zone Authority (CEZA) is a government unit, operating under the Office of the President, which governs an economic area of 50,000 hectares in the province of Cagayan. The zone can offer tax or customs benefits to the local businesses. The authority was initially famous for its convenient and beneficial regulation of internet games. CEZA received the exclusive right to independently approve applications without the need for a national government agency to speed up the processing of gaming licenses.
On June 27, on an official website of CEZA came out a press release announcing that the agency plans to issue 25 basic licenses for crypto-exchanges. Each platform, in turn, will have the opportunity to issue sub-licenses for 20-30 of its traders or brokers.
$67 Million Question
The government plans to earn $67 million for licensing of crypto-exchanges. However, this was not enough for local authority. The platforms will also have to pay CEZA commission in 0.1% of each transaction.
Now, a major license from CEZA is worth $360,000 and will be valid for six months. Companies can get a permanent license for $85,000 when they fully comply with the regulator's requirements. Each platform that receives it, will be able to independently release four more major licenses.
In addition, crypto-exchanges will have to invest at least $1 million in the special economic zone over the first two years of work.
CEZA issued the first of 25 licenses to the Golden Millennial Quickpay Inc. of Hong Kong. Ltd. Thus, this is the first offshore crypto platform that is allowed to trade within a special economic zone. Following that, another trading platform from Hong Kong received the license. The third license was given to the exchange from Thailand.
GMQ has already invested the necessary $1 million to start operations and establish a local office. The сrypto-exchange, together with two other companies, will create at least 500 jobs from their activities.
All platforms that receive a license get a special ‘incubation period’. For two years, the exchanges can locate their offices in Manila while establishing their representative offices in Cagayan. If companies fail to move during a given time period, their licenses will be revoked.