PH Eco Zone Welcomes First Blockchain-Powered Fintech LocatorJul 11, 2018 at 22:01
The Cagayan Economic Zone Authority (CEZA) has granted license to Golden Millennial Quickpay Inc. Ltd. (GMQ) to operate as a virtual currency exchange and fintech solutions provider, making the Hong Kong-based firm the first blockchain-engineered business to enter the special economic zone.
CEZA Corporate Board Secretary Catherine Joy Alameda revealed this during the 2018 GMQ Global Blockchain Summit Philippines held Tuesday in Pasay City.
GMQ is expected to generate some 500 employees, specifically blockchain programmers, while bringing in some experts from its headquarters for technical support and to steer educational trainings on blockchain.
Earlier, the investment promotion agency (IPA) said it would license only 25 financial technology solutions and offshore virtual currency (FTSOVC) operators.
The limit is placed until CEZA draws up needed regulations on blockchain businesses which the agency is eyeing to craft once it finds risk-abating solutions to protect investors from the crypto market’s volatility.
To ensure the legitimacy of cryptocurrency exchange entrants, the agency requires each firm to spend at least $1 million in capital within two years and put up a back office in the country.
So far, the agency has received 70 applications with six of those already paid for licenses. A principal license for FTSOVC operation under CEZA is priced USD360,000, while a regular license is at USD85,000.
As for GMQ, its license is still provisional and is valid for six months. But a permanent one will be issued to the firm once it fulfills the requirements of CEZA.
On license issuances alone, the agency projects raking in P3.6 billion. Add to this the 0.1% share of the agency in each transaction made on the registered virtual currency exchanges.
CEZA is positioning itself to be the “Silicon Valley” of Asia, with the commitment to put up a $100 million fintech center for the zone.