The authority which governs the Philippines Cagayan Special Economic Zone and Freeport has the purpose to earn $67 million just by issuing cryptocurrency exchange licenses.
CEZA grated a principle operation license to Hong Kong-based crypto exchange
According to one report from the government news agency of the country on Tuesday, the Cagayan Economic Zone Authority or CEZA announced that it just grated a principle operation license to a Hong Kong-based crypto exchange.
The CEZA said that this new issuance is just a part of the total 25 principle licenses it is going to hand out to crypto trading platforms. Each of those authorized companies is going to be permitted to further issue at least four regular permits, according to the report.
Raymundo Roquero, the senior deputy administrator
The senior deputy administrator of the agency, named Raymundo Roquero, said that the CEZA charges about $360,000 for a principal license and about $85,000 for a regular one, but the report does not further clarify the principle differences that are between these two types of licenses.
Through that tiered exchange licensing model, Roquero said that the authority expects to make a profit of about 3.6 billion pesos, or around $67 million.
Additionally to the one-off licensing fee, the approved exchanges were also required to pay the CEZA 0.1% of the value of each transaction which occurs on their platforms.
CEZA received 70 applications
Raymundo claimed that the CEZA has received 70 applications so far, and it is going to issue more licenses in the months that come since six of the applicants have already paid the licensing fee.
Being a part of the requirement of the license, crypto exchanges registered in the exclusive economic zone have to also locally invest at least $1 million within two years period, and also have a back office in the Philippines, according to the report.
As CoinDesk has previously reported, the Philippines released a guideline for Bitcoin exchanges earlier in 2017, but it has received little interest in the time since that. The central bank of the country granted the first crypto exchange licenses to two local platforms in August 2017.