The Philippines is becoming the latest hot spot for cryptocurrency exchanges, with the country now home to 48 exchanges.
11 of the cryptocurrency exchanges are registered by the central bank, the Bangko Sentral ng Pilipinas, with 37 other crypto exchange operators licensed by the government-owned Cagayan Economic Zone Authority (CEZA).
The Central Bank of the Philippines has adopted a formal regulatory approach to Cryptocurrencies via the issuance of Circular No. 944, which was introduced February 7th 2017. The issuance requires any business engaged in the exchange of Cryptocurrencies for fiat money in the Philippines to register with the Central Bank as settlement and transfer companies.
The Central Bank has commented, stating,
“BSP-registered VC exchanges are now required to put in place adequate safeguards to address the risks associated with VCs such as basic controls on anti-money laundering and terrorist financing, technology risk management and consumer protection.”
In regards to cryptocurrency exchanges registered with the Cagayan Economic Zone Authority (CEZA), they (CEZA) have stated they will offer foreign companies incentives and advantages by registering their businesses there.
CEZA is government owned initiative put in place to manage and supervise the development of the Cagayan Special Economic Zone and Freeport, a 54,119-hectare area located in the northeastern tip of the country.
This means that it operates as a separate customs territory much like Hong Kong, Singapore, Labuan in Malaysia and Hamburg in Germany, as a result of this they attract legitimate and high levels of foreign investment, creating employment opportunities around these areas.