Author: Iris LI
Unlike the restrict cryptocurrency policies made by Chinese government, the Philippines adopts a more open cryptocurrency policy. In February 2017, the Central Bank of the Philippines (BSP) introduced cryptocurrency trading regulations; in July 2017, the Securities and Exchange Commission of the Philippines (SEC) said it would consider classifying certain tokens as securities; in April 2018, the Philippine Securities and Exchange Commission (SEC) announced that the cryptocurrency cloud mining contract is a security. Recently, according to ABS-CBN News, the Philippine Securities and Exchange Commission (SEC) approved the latest ICO draft, which will promote the legal sale of cryptocurrency in Philippines. Mr. Emilio Aquino, The Chairman of SEC, said that the draft will be used for companies to raise funds by selling tokens or cryptocurrency.
Meanwhile, according to Miss Chuchi Fonacier who is positioned in a new Deputy Governor of BSP Financial Supervision Sector, the number of BSP license applications has been expanded from 12 BSR disclosures to 29 companies in December 2017. All applications are currently in different stages of processing. For instance, some applications are waiting for submission requirements, and some applications are about to submit their business models.
Since the Philippines has a $40 million cryptocurrency transaction every month, many companies are competing for the license of Philippine convertible cryptocurrency-legal currency. Bangko Sentral NG Pilipinas (BSP) reported that many companies have applied for licenses to operate in the country.
It is particularly worth mentioning that Cagayan, a province in Luzon, the Philippines, will allow 10 companies to operate in their economic zones. Mr. Raul Lambino, head of the Cagayan Economic Zone Authority (CEZA), said CEZA now allows 10 cryptocurrency companies to enter. He stated,
“We are about to license 10 cryptocurrency exchanges. These crypto exchanges come from Japan, Hong Kong, Malaysia, and South Korea. They can do cryptocurrency mining, ICO, or trade. However, the exchange transaction between legal currency and cryptocurrency must still be completed overseas. This is to avoid infringement of Philippine regulations. Blockchain and cryptocurrency companies need to invest at least US$1 million and pay up to US$100,000 in licensing fees to build a base in the economic zone.”
(Photo by: Stephen Finn)
The Philippine cryptocurrency policies and investment environment have already triggered investment booms in relevant projects from China, South Korea and Japan. Many global blockchain summits also favor the Philippines. Therefore, the Philippines will become a key place for blockchain projects to land in Southeast Asia.