The Cagayan Economic Zone Authority (CEZA) has announced that it will issue 25 “principle licenses” to crypto exchanges in the country. These kinds of license will enable the exchanges that have them to issue at least four licenses themselves moving forward, although there has as yet been no clarification as to the clear differences between principle licenses and regular licenses. What we do know is that these special licenses will come at a cost; CEZA has put a figure of $360,000 on each license issued, with their eye on making a tidy profit for the country.
According to a report from the Philippine News Agency, CEZA has already issued a principle license to an exchange based in Hong Kong: Golden Millennial Quickpay Inc. Ltd. (GMQ). And the Manila Times has reported that three licenses have been granted. Senior CEZA administrator Raymundo T. Roquero, explained how the cost was broken down:
When they apply, they will pay an application fee of $100,000 (P5.35 million) [and a] license fee of $100,000. Then you go into probity checks, then application programming integration (API), which costs an additional $100,000.
There has also been the suggestion that 70 applications for licenses have already been submitted, although these could be a mix of principle licenses and standard licenses – which will cost $85,000 each. And the exchanges that are granted licenses will also have to have a back office in the Philippines as well as a commitment to investing $1 million locally within a two-year period.
Licenses will be renewable on an annual basis, and CEZA are expecting to generate at least $67 million in revenue from this licensing structure.
Image Credit: Deposit Photos