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CEZA Expects to Earn Php 3.6 Billion from Offshore Crypto License Issuing

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The Cagayan Economic Zone Authority (CEZA) expects a sizeable increase in revenue and jobs from the offshore cryptocurrency exchange licenses that it will award to crypto and blockchain companies in the economic zone.

GMQ, a Hong Kong-based company formally receives its offshore cryptocurrency exchange license on July 11, 2018 from CEZA at the GMQ Blockchain Summit.

The company is the first licensee of financial technology solutions and offshore virtual currency (FTSOVC) operating in the economic zone according to Ms. Catherine Joy Alameda, the CEZA Corporate Board Secretary.

The Hong Kong-based crypto exchange will occupy LR Data, a CEZA locator in Sta. Ana, Cagayan. It is also expected to hire around 500 personnel that can work with blockchain programs. The company will also bring in foreign employees to give blockchain technology training and for technical support.

The license given to GMQ is only provisional and valid for six months. A more permanent license will be given as soon as the company is able to fully comply with CEZA’s requirements.

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According to Mr. Raymundo Roquero, CEZA Senior Deputy Administrator, CEZA received a total of 70 applications and only 6 of them have paid for the license fees. “FTSOVC operation principal license” under CEZA costs $360,000 and a regular license is $85,000.

Mr. Roquero added that CEZA will earn Php 3.6 billion from the issuance of licenses and it will also receive a 0.1% share for every transaction on the registered Crypto exchanges.

CEZA will house $100 million worth of fintech facilities. Administrator and CEO Raul Lambino said that they have allocated 8 hectares of the Cagayan Special Economic Zone and Freeport (CSEZF) to foreign blockchain and fintech investors.

Any ICOs that will be conducted by CEZA-based crypto exchanges are off-limits to Filipino residents.