November 23, 2018. The Cagayan Economic Zone Authority has partnered with Rare Earth Asia Technologies (Rare Earth) to market and promote the economic zone as an ideal destination to set fintech and blockchain businesses in the Philippines.
Rare Earth will promote the “crypto valley of Asia” in Japan, Korea, and Australia. The company will have a hand in converting foreign companies in these countries to establish themselves as a “locator” in the economic zone.
Under the agreement, Rare Earth will be complying with rules set forth by the Bangko Sentral ng Pilipinas (BSP) and the Securities Exchange Commission (SEC) when appropriate.
Rare Earth is an offshore crypto exchange licensee of CEZA, together with Tiger Wheel, GMQ, and Liannet, and more than 15 other holders of the provisional offshore virtual currency exchange (OVCE) license. The company will also issue tokens so that its partners can receive transaction fee shares, subject to the regulations set up by CEZA.
In an earlier report, PHASE 1 of the Crypto Valley Project will include the following:
- 25-shop housing development
- licensed offshore virtual asset exchanges (OVEs)
- co-working and living spaces
- business incubation and acceleration hubs
- back offices of virtual exchanges and service providers.
A CEZA Roadshow happened in Tokyo where the agency, Rare Earth, and delegates presented the economic zone to Japanese investors as an ideal location for blockchain businesses in Asia.
With the number of locators increasing, the agency also aims to establish a Code of Conduct for cryptocurrency company locators to make sure regulations in the economic zone are kept in check.
At the moment, there are 17 principal provisional and 2 provisional regular offshore virtual currency exchange licensees. This license should not be confused with the virtual currency license given by the Bangko Sentral ng Pilipinas (BSP) to at least 6 companies as of press time.
CEZA has enjoyed higher earnings compared to last year primarily due to fees and payments from the fintech locators.