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Kristina Frunze

11 July 2018

Cryptocurrency

Philippine Regulator Expects $67M Revenue from Crypto Exchange Licenses

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Philippine government-controlled economic zone expects $67M revenue from Crypto Exchange licenses. In order to obtain a license, companies are required to invest a minimum of $1 million in the zone.

11 July, AtoZ Markets According to a number of online reports, the manager of a government-controlled economic zone in the Philippines anticipates to collect $67 million from the issuance of cryptocurrency exchange licenses. 

Philippine Crypto Exchange Licensing

Back in April, Philippine authorities have informed the public they plan to allow 10 Blockchain and cryptocurrencies companies to operate in the Cagayan Economic Zone. These companies are anticipated to provide employment for the local residents in exchange for tax breaks. The officials will also require the firms to invest a minimum of $1 million over two years and pay up to $100,000 in license fees.

CEZA chief Raul Lambino has commented that time:

 “We are about to license 10 platforms for cryptocurrency exchanges. They are Japanese, Hong Kong, Malaysians, Koreans…They can go into cryptocurrency mining, initial coin offerings, or they can go into the exchange.”

Then, earlier this month, the CEZA has informed the public about its intention to issue 25 primary license to cryptocurrency exchanges. In order to obtain a license, companies are required to invest a minimum of $1 million in the zone. This should be done over a two-year period. 

Philippine Regulator Expects $67M Revenue from Crypto Exchange Licenses

It appears that there are not many clear details, however, online reports state that each ”principal license” will be priced at $360,000. A “regular license” will cost $85,000, according to the report from the Philippine governmental news outlet. 

Moreover, the report notes that each recipient of a principal license will have a right to issue four regular sub-licenses to traders and brokerages. 

CEZA senior deputy administrator Raymundo T. Roquero is expecting the CEZA to generate 3.6 billion Pesos, which accounts for around $67 million from the issuances of the 25 principal licenses and sublicenses. The economic zone authority is anticipated to bring further profits with a 0.1 share in every single transaction conducted at these exchanges with a license. 

As of the moment, the authority has gathered a total of 70 applications from operators that plan to gain a license, with six of them having already paid for the licenses. 

Think we missed something? Let us know in the comments section below. 

Philippines Crypto Exchanges Cryptocurrency News

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