Global Millennial Quickpay (GMQ) has secured its offshore cryptocurrency exchange license from the Philippines’ Cagayan Economic Zone Authority. During the GMQ Global Blockchain Summit, GMQ and CEZA signed the agreement in front of representatives from the Philippine Congress, Chinese businessmen, and the local media.
GMQ’s Offshore Cryptocurrency Exchange Explained
What is an offshore cryptocurrency exchange license?
The offshore crypto exchange license allows GMQ to operate a back office in the Cagayan Economic Zone. The exchange, which is called “GMQ Blockchain Virtual Asset will have the following trading pairs, as per the video that was shown during the event:
According to Atty. Mike Gerald David, Legal Consultant for CEZA, since this is an offshore license, no one in the Philippines is participating in the exchange.
“The exchange will only concern cryptocurrency to another cryptocurrency” – Atty. Mike David, CPA, Legal Consultant, CEZA
Users cannot trade Philippine Pesos to bitcoin and vice versa in GMQ’s exchange because that specific process is covered by the “virtual currency exchange” license which can be acquired from the Bangko Sentral ng Pilipinas (BSP). Atty. David further said that in a way, CEZA’s license looks outside (the company with CEZA’s exchange license operates a back office here but the transactions for people outside the Philippines), while the BSP’s Virtual Currency Exchange License looks inwards and concerns crypto to fiat conversions in the country.
The license given to GMQ will allow the company to sublicense it to other businesses, as mentioned by CEZA Secretary Raul Lambino in another event last June 2018.
Security of the Exchanges
As for the security of these exchanges, Atty. David confirms that even before entertaining applications, CEZA asks applicants to go through a very strict security and background check. Upon issuance of the license, there will be a provisional period when CEZA routinely checks the company’s observation of the country’s Anti-Money Laundering (AML), Counter Terrorist, and Data Privacy Laws.
In this way, CEZA does not only protect the company but also its participants. CEZA partners with LR Data when it comes to Internet security inspections of the companies applying for an exchange license.
It is expected that CEZA will award 25 offshore cryptocurrency exchange licenses to companies that want to operate in the Cagayan Economic Zone.
The GMQ Global Blockchain Summit was held at the Sofitel Philippines Plaza on July 10, 2018.
Companies in this article: