Philippines’ Cagayan Special Economic Zone and Freeport (CSEZFP)is set to see the launch of a new fintech and crypto hub; as part of the government’s bid to foster a fintech ecosystem attract international blockchain companies to set up shop in the country.
The CSEZFP features a transshipment hub with a seaport, airport, and land earmarked for industrial, commercial and industrial development. It is located in the Northern Luzon region, which is about half of the largest island of the PH, with many of its provinces hosting one or two industrial parks.
The estate, called the Crypto Valley of Asia (CVA), will be developed by the Cagayan Economic Zone Authority (CEZA) in partnership with private property developer Northern Star Gaming & Resorts Inc. (Northern Star).
Northern Star said that it has already secured several international and regional companies to locate within CVA. In addition, it has committed gross investments valued at US$100 million over the next 10 years.
The goal is for the CVA to generate an economic boom that will allow more Filipinos to pursue careers in technology. Additionally, the hub will provide employment for third-party business providers (BPO) who service the fintech and cryptocurrency sectors. For example, some BPOs will help with skills training for entrepreneurship.
“CEZA welcomes the launch of the Crypto Valley of Asia as a critical infrastructure that will serve to attract more foreign investors and global fintech players to CEZA and the Philippines. The Philippines can become one of the major off-shoring destinations for Fintech and blockchain related work,” said CEZA CEO Sec. Raul L. Lambino, in an official press statement.
The CVA will consist of a 25-shop housing development inside the cyberpark developed in compliance with the strict security requirements of licensed overseas virtual exchanges’s (OVE) locating in CEZA. It will include co-working and living spaces, business incubation and acceleration hubs as well as back offices of (OVEs) and service providers to the global crypto space.
Amongst the many locators and services include: co-working space such as Common Ground of Malaysia; cybersecurity and risk assessment by Horangi (Singapore) and Blackpanda (Philippines); and Blockchain Academy, launched in collaboration with Hanwha of Korea.
There will also be an internet data centre, crypto mining firms, and self-contained power production facilities.
“Crypto Valley of Asia and CEZA will put the Philippines on the global map of fintech and blockchain. Similar to other progressive jurisdictions such as Zug of Switzerland, we will create an environment that fosters innovation, entrepreneurship and critical skills development thru education and BPO training,”said Enrique Gonzalez, Chairman of Northern Star.
“With strong global partners that have confirmed entry into our master-planned development, we are confident in the continued momentum in positioning the Philippines as the leading destination for blockchain off-shoring.”