According to an article by Reuters published today, the Philipino government has come to an agreement to welcome cryptocurrency exchange operations into a special economic zone of that country. They will be the first operators of cryptocurrencies on that zone, but they will have to comply with certain goals to remain there.
The Cagayan Economic Zone Operator, Raul Lambino, reported to the press that more than 10 cryptocurrency operators will be licensed to do business in the said zone. He stated that:
“WE ARE ABOUT TO LICENSE 10 PLATFORMS FOR CRYPTOCURRENCY EXCHANGE. THEY ARE JAPANESE, HONG KONG, MALAYSIANS, KOREANS,”
He made also a surprising statement, affirming that:
“THEY CAN GO INTO CRYPTOCURRENCY MINING, INITIAL COIN OFFERINGS, OR THEY CAN GO INTO EXCHANGE,”
Initial Coin Offerings, or ICOs, have been under the spotlight for quite a while for their dubious reputation, and some have been reported to be scams or Ponzi schemes. Recently in the United States, they have been endured greater scrutiny by the Securities and Exchange Commision by their characteristics. It is supposed that they will regulate them accordingly.
Also, this agreement has its limitations. Since it is a regional agreement, it should still comply with country regulations. So that is why in exchanges, the cryptocurrency to fiduciary money trades should be done outside national borders because Philipines still does not recognize cryptocurrencies as national trade coins.
The operators accepted should also meet certain goals: they must invest at least one million dollars in the zone over two years and pay up to $100,000 in licensing fees. A steep pay for some small exchanges, but a penny in the ocean for others.
This is an interesting development and a great time to massify adoption of cryptocurrencies in that zone. If the crypto businesses make that zone prosper, we anticipate a swift approval of this kind of business in all the Philipino land.