Philippines Regulator Aims to Make $67 Million From Crypto Exchange Licensing

The authority that governs a special economic zone in the Philippines plans to reap $67 million by issuing crypto exchange licenses. 

Jul 11, 2018 at 6:15 a.m. UTC
Updated Sep 13, 2021 at 8:09 a.m. UTC

The authority that governs the Philippines Cagayan Special Economic Zone and Freeport is aiming to earn $67 million just by issuing cryptocurrency exchange licenses.

According to a report from the country's government news agency on Tuesday, the Cagayan Economic Zone Authority (CEZA) has announced it has just granted a principle operation license to a Hong Kong-based crypto exchange.

The CEZA said the new issuance is part of the total 25 principle licenses it will hand out to crypto trading platforms. And each of those authorized companies will be allowed to further issue at least four regular licenses, according to the report.

The agency's senior deputy administrator, Raymundo Roquero, said that the CEZA charges $360,000 for a principle license and $85,000 for a regular one, but the report does not further clarify the main differences between these two types of licenses.

Through the tiered exchange licensing model, Roquero said that the authority expects to make a profit of 3.6 billion pesos, or around $67 million.

In addition to the one-off licensing fee, approved exchanges are also required to pay the CEZA 0.1 percent of the value of each transaction that happens on their platforms, the report said.

Roquero indicated that the CEZA has received 70 applications so far and will issue more licenses in the coming months since six of the applicants have already paid the licensing fee.

As part of the license's requirement, crypto exchanges registered in the special economic zone must also locally invest at least $1 million within two years, and have a back office in the Philippines, the report said.

As previously reported by CoinDesk, the Philippines released a guideline for bitcoin exchanges in early 2017, but received little interest in the time since. The country's central bank granted the first crypto exchange licenses to two local platforms in August of last year.

Philippines peso image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Ransomware Gang Extorted 725 BTC in One Attack, On-Chain Sleuths Find

The infamous Conti ring’s internal messages, leaked in February, served as a jumping-off point for a new transaction analysis by Crystal Blockchain.

The infamous Conti ring’s internal messages, leaked in February, served as a jumping-off point for a new transaction analysis by Crystal Blockchain.

2
Certora Raises $36M for Smart Contract Security Tools

Jump Crypto led the funding round for the firm, which secures $50 billion of DeFi assets.

Jump Crypto led the funding round for the firm, which secures $50 billion of DeFi assets.

3
CyberConnect Raises $15M to Expand Social Graph Protocol

The project seeks to make user data interoperable between Web 3 dapps.

The project seeks to make user data interoperable between Web 3 dapps.

4
First Mover Americas: Bitcoin Retakes $30K as 'Institutional Adoption' Makes Crypto More Like Stocks

The latest moves in crypto markets in context for May 17, 2022.

The latest moves in crypto markets in context for May 17, 2022.