The Cagayan Economic Zone Authority of the Philippines has earned Php 205.976 million (S3.85 million) for the 2nd quarter of 2018, raising its revenue for the entire Q2 2018 to Php 340.625 ($6.37 million). The increase in income, that has now exceeded all of CEZA’s 2017 income is largely due to the interest of financial technology firms and cryptocurrency exchanges that want to locate at the Cagayan Economic Zone.
According to CEZA administrator and CEO, Secretary Raul Lambino, the income from fintech firms planning to conduct offshore virtual currency exchange, blockchain solutions, and initial coin offerings (ICO), only cover their application and license fees as principal licensees.
CEZA stands to earn Php 3.5 billion ($67 million) from the 25 principal holders of the Financial Technology Solutions and Offshore Virtual Currency (FTSOVC) license or Offshore Cryptocurrency Exchange License. The economic zone will also have a 0.1 percent share from every transaction value generated from these offshore exchanges.
More than a revenue source, the fintech and blockchain firms will create more than 20,000 new jobs for positions IT (information technology), technology, and management. Initially, these exchanges will operate in designated offices in Metro Manila but will move to Cagayan after 2 years. This is once the modern Fintech Hub development of the 10-hectare property in Sta. Ana is completed.
The first principal licensees are Golden Millennial Quickpay, Ultra Precise Investment Ltd., and Liannet Technology. Among those who have already paid the fees are Asia-Pacific Intl. Ltd., Formosa Financial Holdings, Hongkong Yuen Shing-Hong Ltd., Rare Earth, Sino-Phil Economic Agency Development and Management Corp., and Tanzer Inc.
Those with pending applications include Hachiman Technology Sdn. Bhd., MX Exchange Ventures, Changwei Intl. Co. Ltd., and Asia Pacific Blockchain Association.
While the back offices are located for now in Metro Manila, all trading transactions of digital assets are coursed through LR Data, CEZA’s accredited cyber park located in Sta. Ana, Cagayan.