Philippine government to allow ten crypto companies to set up offshore

The Philippine government will allow just ten blockchain and cryptocurrency companies to set up in a special offshore economic zone.

Reuters reports that the companies licenced by Philippines regulators will gain entry into the zone, which marks the first time such entities have been permitted in the country and neighbouring territories.

Raul Lambino, chief of the Cagayan Economic Zone Authority, said: “We are about to licence 10 platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, Koreans. They can go into cryptocurrency mining, initial coin offersing, or they can go into exchange.”

The reason these exchanges will operated offshore is to avoid violating Philippine regulations, and they should invest at least £717,468 over two years in addition to $100,000 in licence fees.

The Philippine central bank has previously referred to cryptocurrencies as a ‘misuse’, deciding not to endorse its use in the country.