Cagayan Economic Zone Authority (CEZA) has already signed up to 21 offshore blockchain companies, bringing in at least P2 billion in fresh investments in the next two years.
During the “A New Venture in the Valley Unfolds: CEZA Fintech Summit 2018” held in Bonifacio Global City, CEZA Administrator and Chief Executive Officer Raul Lambino described the “technological garden” located in the 54,000-hectare Cagayan Special Economic Zone and Freeport (CSEZFP), of which an initial eight-hectare property had been earmarked for fintech locators.
Aside from the potential P2 billion fresh investments, Lambino is also positioning Freeport as the next “Fintech City” or the “Silicon Valley” of Asia.
“The best of nature and of cutting-edge technology will combine to bring about a new hub in Asia for the world’s leaders in the burgeoning global currency of the future,” he said.
This P2-billion expected investments to be made from these deals include US$1 million for physical infrastructure, application, integration and license fees from blockchain companies engaging in cryptocurrency exchanges, crypto mining, and blockchain development, among others.
Leading the first batch to sign a Memorandum of Understanding (MoU) with CEZA was Hanwha Group, a Korean conglomerate with diversified holdings in aerospace, chemicals, energy, aerospace and mechatronics, construction, and financial services.
Three Hong Kong-based Chinese fintech companies interested in venturing into international crypto exchange are Changwei International Co. Ltd, Xin Peng Group, and trading firm ST Union Capital Holdings.
Other fintech locators were ANX International, Asia Pacific Blockchain Association, Asia Premier International Ltd., Coin Bundle, CSM, Hachiman Technology Sdn BHD, Pacificnet Strategic Investments Ltd., Madison Blockchain Strategy Investment Company Ltd., MX Exchange Ventures, IPE Global PTE, Inc., Mobile Pole Position Pte. Ltd., Northern Orient Resources, Inc., Paradigm Technologies Unlimited Solutions Corp., Stepwyze LLC. Superieur Tech Pte. Ltd., and SuperAngels Ventures Ltd., Ultra Precise Investments Ltd.
In return for tax breaks, each fintech company is required to invest $1 million in two years and pay up to $100,000 yearly license fee.
Lambino assured that there will be a steady stream of the needed local manpower for these companies as he is looking at establishing the first-ever fintech university in the sprawling special economic zone.