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Changes Afoot for Philippine Crypto-Friendly Economic Zone

The special economic zone in the Philippines known for its crypto friendliness is undergoing some changes. Government-owned Cagayan Economic Zone Authority (Ceza) is investigating a case involving one of its licensed crypto exchanges after a tip from the Chinese government. The authority has also issued new directives to all of its licensees, including 40 crypto exchange operators.

Also read: Philippines Increasingly Crypto-Friendly

Better Due Diligence, License Suspensions

A government-owned and controlled corporation, Ceza oversees the development of the Cagayan Special Economic Zone and Freeport, with the aim to turn the area into the country’s cryptocurrency hub. While in the process of building what it calls the “Crypto Valley of Asia,” Ceza has been attracting many companies to set up offshore crypto exchanges in the zone.

Local news agency ABS-CBN reported Tuesday that 40 firms have been licensed by Ceza to operate crypto exchanges, but only three are fully operational as of September. They are Golden Millennial Quickpay Inc. Ltd., Liannet Technology Ltd., and Asia Premier International Ltd.

Changes Afoot for Philippine Crypto-Friendly Economic Zone

The operations of all three aforementioned licensees are temporarily suspended as Ceza improves its due diligence. The move follows a scam uncovered last week, which allegedly involved one of its licensees. Ceza spokesperson Mike David reiterated to the news outlet that their operations are suspended for “due diligence.”

In Tuesday’s press release, Ceza explained that the three companies have been “authorized to temporarily operate within a short incubation period in Metro Manila … Pending the completion of the facilities in Sta. Ana, Cagayan, where development works have already started this year.” Nonetheless, Administrator and CEO Raul Lambino clarified that they are still required to run all trading transactions through LR Data, a cyberpark in Cagayan, according to the Inquirer publication.

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