The Philippines seem to be reluctant to stay aside when it comes to crypto-regulation. Almost half a year ago the country’s SEC commissioner stated the government might consider ICOs securities, whereas now the state is looking forward to allowing the functioning of cyber assets operators within the established economic zone.
The Philippines Getting Precise About Cryptos
On April 25, the gov’t official in the Philippines announced that the country intends to permit 10 blockchain and digital assets companies to function in an economic zone. That is expected to be advantageous for crypto-firms as long as this zone will allow them to be warranted differential treatment when it comes to tax fringe benefits when creating jobs, Reuters reports.
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According to the report, these companies are going to be the first crypto-firms to function in the country. And that is after the Philippines’ regulators legalized their occurrence into an economic area around two months ago – in February 2018. It is remarkable that the Philippines are looking “a little out of place” as none of their closest neighbors has done that before.
Raul Lambino, the head of the Cagayan Economic Zone Authority, told the media agency that the state is about to issue a license to 10 platforms for cuber money swapping/trading. As per his words, among them there are companies from:
- South Korea
- Hong Kong
Moreover, their field of action is expected to be pretty broad: all of them will be permitted to do mining, run ICOs or function as cyber money trading venues.
However, not everything is so smooth. As long as the Philippines law outlaws the conversion of public currencies into digital coins, that will have to be done by exchanges overseas – offshore.
Economic Zone To Embrace Cryptos
A state agency, representative of which appears to be Lambino, manages the Cagayan Special Economic Zone and Freeport. This area is situated in the North-East of Philippines.
Just a few months ago the country’s gov’t generated special rules, according to which cyber assets firms are allowed to open offices and other operands.
As per Reuters, these companies will have to pile minimum of $1 million in the span of 2 years so that their license expenditures would be recouped. By the way, license fees make up around $100,000, so perhaps this is the reason why the number of entering in economic area companies is so limited.
Besides this excellent for crypto-enthusiasts news, the regulator of the exclusive zone is considering whether to establish a blockchain and fintech university in the area. According to Lambino, this will provide crypto-firms with employees.
Overall, it is quite a common governmental strategy to offer regulatory options to virtual money firms in Asia. Authorities there have been trying to jump on the cyber assets bandwagon and curb on cryptos given the rage.
Despite the fact that several crypto-companies are getting an opportunity to function within the borders of the Philippines’ economic zone, cryptos, in general, are restricted in the country. In particular, the central bank of the state is the body which regulates the operation of digital money bourses in the Philippines.
Yet, it has not embraced the use of any cyber assets. As an excuse, the Philippines’ top financial institution says that cryptos are open to being used improperly. As usual, that comprises the funds laundering issue, terrorism supply as well as the purchase of illegal items or services.
Last year November the Philippines’ authorities were even considering recognizing ICOs as securities so that they would be subject to Securities Regulation Code and be less liable to fraudsters.