A Special Economic Zone Opened for Crypto Companies in Philippines
April 27, 2018
Philippines to allow 10 blockchain and cryptocurrency companies to operate in the country and will offer them tax concessions in exchange for work opportunities.
A special economic zone in the province of Cagayan was established in February, and now the first companies have been invited to it. All these companies was licensed by the government.
Chief of the Cagayan Special Economic Zone Raul Lambino told Reuters:
"We are about to licence 10 platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, Koreans. They can go into cryptocurrency mining, initial coin offerings, or they can go into exchange."
He added that the companies can only exchange cryptocurrency for cryptocurrency, while all fiat-to-crypto operations they have to do outside of the country, because of the regulations.
In order to obtain a licence and be allowed to enter the special economic zone, companies must invest at least $1 million in a span of two years, as well as pay a license fee of $100,000. Lambino said that opening a university in the special economic zone to study blockchain and financial technology in planned, that would provide the companies with local workers.