Cryptocurrencies are becoming more and more popular all over the world, and their use continues to expand. In such a dynamic industry as cryptocurrencies, the availability of a license is not just a formality, but a prerequisite for the successful operation of the company. In the Philippines, which is becoming a significant point of attraction for the cryptocurrency business, there are several types of licenses, each of which is suitable for certain types of activities.
The Philippines, as a region with a growing role in the crypto industry, is known for its advanced approaches. Crypto Philippines is not just a destination, it is one of the leading ecosystems in Asia, where conditions are created for legal and secure work with digital assets. Let’s take a closer look at which licenses are available here.
Why is a license important?
Working with cryptocurrencies requires compliance with many rules. Without a license, it is impossible to officially conduct financial transactions, attract customers and cooperate with major partners. The license provides the following advantages:
- The right to work legally in the jurisdiction.
- Customers’ confidence in the reliability of the company.
- The possibility of unhindered interaction with banks.
- Access to additional investments and partners.
This is especially true for those who are going to build a business in the Philippines, where the crypto market is actively regulated.
Types of licenses for cryptocurrency companies
In the Philippines, you need to get a license to work with cryptocurrencies. However, there are several types of them, depending on the type of activity. Main.
- Virtual Asset Service Provider (VASP) license. This license is suitable for companies that are engaged in the exchange of cryptocurrencies, their storage or transfer. For example, if you want to open a crypto exchange or a wallet for storing digital assets, you will need VASP.
- Electronic Money License (EMI). If you plan to launch a payment-related platform, this license is required. It allows you to provide services for processing digital payments, issuing electronic money and using it for settlements.
- Financial Technology License (FinTech License). This license is suitable for startups that work in the field of blockchain technologies or create financial products based on cryptocurrencies. This is a more flexible license that allows you to develop innovative solutions.
- Special licenses of economic zones. There are special zones in the Philippines, such as the Cagayan Economic Zone, where crypto companies can get additional benefits. In such zones, companies operate according to special rules and enjoy benefits, including simplified taxation.
How do I choose a suitable license?
The choice of a crypto Philippines license depends on what exactly you plan to do. If the main goal is to open an exchanger or wallet, then VASP will be the best option. For those who are focused on payment systems, an EMI license is suitable. If you are working on creating blockchain products or platforms for asset tokenization, it is worth considering a FinTech license.
In addition, it is important to take into account regional peculiarities. For example, many companies choose economic zones to start a business, as this helps to reduce tax costs and simplify the process of obtaining permits.
What is important to consider when obtaining a license?
Obtaining a license is not just about submitting documents. You will have to fulfill a number of conditions:
- Comply with safety standards. Crypto companies must protect their customers’ data and prevent hacks.
- Create a reliable risk management system. This is especially important for combating money laundering and other illegal activities.
- Hire qualified staff. For licensing, it is important that the team has specialists who are able to maintain all processes at a high level.
Regulators in the Philippines are very strict about companies that work with cryptocurrencies. Without strict compliance with all the rules, your application may be rejected.
A license is the basis for working with cryptocurrencies in the Philippines. Each type of license has its own characteristics, and your choice depends on the business orientation. The main thing is to study all the requirements in advance and prepare the documents. In this case, you will be able to avoid problems and start working legally in one of the most promising jurisdictions in Asia.