[2018-07-11] Philippines granted a license to Hong Kong-based crypto exchange

[Thadeous]

Philippine Economic-Zone OKs Hong Kong Crypto Exchange License

The Cagayan Economic Zone Authority has granted a license to Hong Kong-based cryptocurrency exchange Golden Millennial Quickpay.

Cagayan Economic Zone Authority (CEZA), in the northern Philippines, said on Tuesday it granted a license to Hong Kong-based Golden Millennial Quickpay Inc. Ltd. (GMQ) to launch its cryptocurrency exchange and financial technology solutions business in the country.

CEZA Corporate Board Secretary Catherine Joy Alameda said in an interview on the sidelines of the 2018 GMQ Global Blockchain Summit, the Hong Kong-based exchange is the first offshore cryptocurrency marketplace allowed to operate inside the economic zone.

In a previous interview with CEZA administrator Atty. Raul Lambino said that he would limit the number of cryptocurrency exchanges inside the Cagayan zone to 25 after his office is inundated with applications from blockchain-focused companies.

   “We will not be accommodating them all. From the more than 60 [digital currency exchange] applications that we received, we will only approve 25 operators,” he told Cryptovest.

GMQ has invested $1 million to start operations and set up an office in LR Data, a CEZA location in Sta. Ana, Cagayan. The digital currency exchange joins two other cryptocurrency-focused firms in CEZA. Together they are expected to open at least 5,000 jobs for their operations.

   CEZA Senior Deputy Administrator Raymundo T. Roquero commented on the GMQ license, “The license was issued last week. They were the first, [along with two other firms]. These are all Hong Kong-based, [while one] is from Bangkok, Thailand. These are offshore companies with a capital investment of $500,000. They have a committed investment to us of $1 million [each].”

He clarified that fintech firms approved by CEZA to operate within the economic zone are allowed to set up their headquarters in Manila temporarily for at least two years to give them time to build their facilities in Cagayan, nearly 649 kilometers away from Manila. The firms will lose their licenses if they fail to relocate to the economic zone within the prescribed period, he said.

   “Within two years, they have an incubation period here in Metro Manila. They are supposed to build their infrastructure and facilities in Santa Ana, Cagayan, within two years. They have a timeline. First quarter of next year, they should have bought land in the ecozone. Second quarter, they should start building already,” he added.

During last month’s blockchain summit, Lambino said he would allow initial coin offerings (ICOs) inside the economic zone if they are backed with tangible assets.

He added:

   "If they have ICO we will have to find out if their ICO is asset-backed because this what we are saying, that there are many scammers. If they offer in the market their initial coin, they may be able to convince 50 unsuspecting investors and promise them the sun and the moon. This is a Ponzi scheme. We are not going to allow it.”

Source: https://cryptovest.com/news/philippine-economic-zone-oks-hong-kong-crypto-exchange-license

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[cryptofonia]

Philippines allow direct fiat crypto deals and it's great, what's country do the same?

[orions.belt19]

Great move for the Philippines and its good that they’re open to allowing foreign based exchanges to enter. It seems that they’re sort of strict in making their headquarters based in Cagayn since they have only allowed them two years to relocate. Manila is very far from Cagayan and it’s a wonder why they are made to be based way over there. Gathering employees who are willing to relocate might be a problem but this firm opening would definitely offer some job opportunities for others.

It’s great to hear that there is also some consideration towards ICOs even while it is known to be full of scams. The Philippines is becoming more and more crypto friendly and new developments are being heard almost everyday now.

[Slow death]

Philippines allow direct fiat crypto deals and it's great

yes

people of the philippines have the coins.ph

what's country do the same?

this countries: Japan, USA, South Korea, Malta, Austria, Belgium, Denmark, Finland, Ireland, Italy, Luxembourg, Monaco, Norway, Portugal, Spain, Sweden, United Kingdom and Canada

It’s great to hear that there is also some consideration towards ICOs even while it is known to be full of scams.

this will undoubtedly be the biggest headache that the government of the Philippines will have

[Kemarit]

Oh I thought that all applying for a license is all home grown Philippine company, that's why I'm happy at first. But reading that they approved a Hong Kong based crypto, I'm wondering will it be beneficial for the country? I don't know about ICO though, they should made a through study because really allowing  other companies to "exploit" Philippines relax rule on crypto. Its going to be bad if they allow someone and then suddenly turns out to be a scam. The country is plagued with corruptions, so I wouldn't be surprised if more outside crypto exchange companies are granted license more than home grown companies applying for.

[jhenfelipe]

Oh I thought that all applying for a license is all home grown Philippine company, that's why I'm happy at first. But reading that they approved a Hong Kong based crypto, I'm wondering will it be beneficial for the country? I don't know about ICO though, they should made a through study because really allowing  other companies to "exploit" Philippines relax rule on crypto. Its going to be bad if they allow someone and then suddenly turns out to be a scam. The country is plagued with corruptions, so I wouldn't be surprised if more outside crypto exchange companies are granted license more than home grown companies applying for.

I think it would be beneficial because of the investment amount, plus of course more jobs to the people. About the ICO scams, it seems that the government is well aware of that:

Each must invest an initial $1 million within two years of operations to ensure that the country would not be a haven for initial coin offering scams.

Besides, there will be a probity and integrity checks for each company so it will be filtered. I'm not sure what rules they have for crypto companies, but I believe they wouldn't start this without doing a thorough research/study about Blockchain, Cryptocurencies, ICOs, Exchanges.
 
More about it here: http://www.manilatimes.net/ceza-grants-licenses-to-crypto-firms/418219/