Philippines Cryptocurrency Economic Zone Expands Interest
The Philippines is one country that has gone against the grain of being tough on cryptocurrencies. While countries all over the world are working to regulate the market as much as they legally can, this nation has made a concerted effort to give the community room to grow within special economic areas known as cryptocurrency economic zones.
The economic zone idea has long been explored by leading economists around the world as a possible means of regulating the growing cryptocurrency markets fairly and effectively. By creating an area with less significant restrictions on cryptocurrency business and marketing, the government accomplishes several key goals in one legislative move.
First, an economic zone allows the government to effectively monitor the progress of the industry, taking notes that will be of vital importance when it comes time to draft new legislation regarding the blockchain.
But perhaps more importantly to the cryptocurrency community, the establishment of largely free economic zones for cryptocurrency allows investors and entrepreneurs to experiment and work in their own way to establish business, innovation, and significant profits. In essence, an economic zone could help to establish a clear cryptocurrency ecosystem within a country, without hurting the general population by contributing to job loss and instability in the fiat trading market.
Philippines Interest Spikes
The economic zone in the Philippines is typically regulated by the Cagayan Economic Zone Authority, or the CEZA, which is owned and operated by the Philippine government. The authority has always seen interest since the establishment of the unique economic zone, with companies from all over the world flocking to the area in an effort to take advantage of fair rates of doing business and generally lax regulations and oversight.
But in the past month, the governmental agency has seen the amount of companies applying for crypto licenses in the CEZA climb significantly. According to inside authorities, the interest has “surpassed all our expectations.” Specifically, the agency has seen over seventeen different firms pay the full amount of the fee associated with applying for a license, and 19 additional companies are working on their payment process.
In total, the economic zone expects that they will make over USD $68 million from the current application process with these companies who have recently begun their process of applying. In total, the CEZA has announced that they plan to issue 25 of the licenses, which are known as Financial Technology Solutions and Offshore Virtual Currency Licenses, or FTSOVC.
Additionally, the economic authority has already issued two licenses to foreign companies. The second went to a subsidiary organization of the Apsaras Group, while the first license issued went to a Hong Kong corporation by the name of Golden Millennial Quickplay, inc.
The progress of the economic zone is of special interest to the cryptocurrency sector because it might become a test case for other governments who might want to experiment with the creation of their own economic zone. Its successes will serve as evidence of the effectiveness of a moderate and fair regulatory approach.