On 17th July, the Cagayan Economic Zone of the Philippines has started conducting a thorough screening of organizations to avoid unreliable companies. The Philippines has realized that with the development of blockchain there also comes the added disadvantage of many companies using the decentralized platform for nefarious purposes.
Ray Roquero, the Senior Deputy Administrator of the Cagayan Economic Zone Authority [CEZA] has stated that:
“Philippines’ Cagayan economic zone seeks to provide attractive conditions for financial technology (fintech) and blockchain enthusiasts but screens the applicants thoroughly to avoid fly-by-night companies”
Roquero stated this during CEZA’s first issue of a cryptocurrency exchange license to Hong Kong-based Golden Millenial Quickpay [GMQ]. GMQ is one of the many companies in the fintech sector that applied for a license to function in the CEZA setting the ground for a landmark deal. CEZA CEO Raul Lambino was also quoted as saying:
“GMQ is a pioneer in CEZA’s venture to establish a financial technology and offshore virtual currency exchange business, which will eventually form the nucleus of the CEZA Fintech Hub”
The Cagayan Special Economic Zone with its open-ended market scheme and welcoming trade policies provides fintech companies the perfect starting point blockchain startups.
The officials in charge of the Special Economic Zone have also revealed that the stringent security measures have been put into place because of Philippines’ new cryptocurrency policies. After a lot of controversies surrounding tougher impositions on cryptocurrencies crimes and laws in the Philippines, the government now allows operations of 10 blockchain and virtual currencies in the Cagayan economic zone.
Lambino stated during the policy change:
“We are about to license 10 platforms for cryptocurrency exchange. They are Japanese, Hong-Kong, Malaysians, and Koreans. They can go into crypto-exchanges, initial coin offering [ICO] or into cryptocurrency mining.”
The Philippines is one of the first countries to make cryptocurrency a legal component in the whole of Asia. Although not all of the Philippines endorses the idea of cryptocurrencies like Bitcoin, it is still a marked contrast to the time when Asian countries were vehemently against any form of digital currency.
The central bank of the Philippines is an example of a government body that still does not endorse cryptocurrencies. With the cryptocurrency wave hitting Asia, countries such as South Korea and China are also revamping their cryptocurrency policies.
Malpractices in the cryptocurrency field are something that South Korea is familiar for which the country’s governing bodies have established a team to look into cryptocurrency frauds. The reports released by the investigations team stated that:
“The on-site inspection mainly focuses on the technical and administrative protection measures for personal information, such as access control to the personal information processing system, prevention of tampering with access logs, encryption of personal information, and prevention of malicious programs.”
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