Authorities economic zone of the Philippines controlled by government to develop a regulation for cryptocurrency and plan to limit the number issued to companies licenses to 25. Other rules include the requirement for each exchange to invest at least $1 million within two years. According to reports, the authorities received about 60 applications to work in the SEZ from cryptocurrency companies.
In the Special Economic Zone of Kahana (CEZA), controlled by the government of the Philippines, «developed rules for the protection of cryptocurrency investors», according to state media Philippine News Agency.
CEZA is a government and controlled Corporation tasked to manage the development of the Special Economic Zone of Kahana. «CEZA aims to become a center of investment in FINTECH,» notes the news Agency.
According to the Director General and administrator of the SEZ, Lambino Raul (Raul Lambino), CEZA «is developing regulations that will protect those who invest in cryptocurrency». In a statement this week he said that the government «will strictly test the honesty and integrity of the companies, wishing to perform initial placement of tokens (ICO) in the country. These companies must be registered in the CEZA».
Originally CEZA has announced that it will allow 10 of cryptocurrency firms take advantage of the tax benefits of the region and to create in the special economic zone new jobs.
«We’re going to license 10 cryptocurrency exchanges. This is the Japanese, Hong Kong, Malaysian and Korean sites. They can do cryptocurrency mining, ICO to carry out or to provide foreign exchange services», — said Lambino in April of this year.
However, he then noted that any exchange of Fiat currency to crypto-currencies or Vice versa must be performed outside the Philippines in order not to violate the laws of the country.
However, last week on Global Blockchain Summit, Lambino revised the number of companies and said that CEZA will issue licenses to 25 companies. He said:
«Every bitcoin exchange will need to invest at least $1 million within two years and to have an office in the Philippines. Firms must also be registered in the Commission on securities and stock exchanges. Although CEZA will be issued only 25 licenses, each exchange will be 20 to 30 sub-licenses to traders and brokers,» explained Lombino. According to reports, CEZA has already received more than 60 applications from cryptocurrency companies.
Lambino, stressed that the regulation will not allow to prosper and fraudulent pyramid schemes. He explained that any company wishing to hold the ICO must prove that «the ICO will be supported by real assets» since in the industry a lot of scams. He noted that some ICO «manage to convince of their value at least 50 unsuspecting investors and promise them all the treasures of the world.» Lambino added:
«In the industry a lot of scammers who create companies, almost without investing anything in them, and benefit from defrauded investors. We don’t want the Philippines was a refuge for crooks, even if these scams originate overseas. That’s why thanks to our integrity and integrity can we determine whether their work is evil intent in order to induce unsuspecting investors to invest in coins that are fake.»
In General, the Philippines has always been at the forefront of cryptocurrency regulation. The state became one of the first countries in the world, started to regulate cryptocurrency exchanges in early 2017. Last autumn, the Deputy Director of the Central Bank of the island nation, said he welcomed «innovative regulation» and called cryptocurrency «quick and easy».