CEZEX, the first licensed overseas virtual currency exchange to launch out of Philippines’ Cagayan Economic Zone Authority (“CEZA“), will allow users to trade fiat and crypto currencies, security tokens backed by assets such as stocks, bonds, commodities and real estate, and derivatives including CFD and commodities.
CEZEX, one of the first members of ABACA, is a licensed Offshore Virtual Currency Exchange and Asset-Backed Securities Token Exchange (“OVCE”), regulated and licensed by CEZA, a government owned and controlled corporation set up in 1995 to manage and supervise the development of the Cagayan Special Economic Zone and Freeport (CSEZFP).
“CEZA has since initiated several projects to promote development in the CSEZFP – including the development of the Crypto Valley of Asia (“CVA”), a development by Northern Star Gaming & Resorts Inc (“Northern Star”) and Falcon Gain, a property development consortium led by Mr Enrique Gonzalez and Mr. JJ Atencio, to bring economic growth to Northern Luzon.”
CVA aims to be home to a new wave of financial technology companies establishing their operations in the CSEZFP. CVA expects to secure investments valued at US$100m over the next 10 years.
CEZA has appointed ABACA as the first Self-Regulatory Organisation (“SRO”). As an SRO, ABACA will make and enforce its own rules among its members or associated persons. CEZA, however, will remain the overall regulator.
CEZEX will offer a licensed, regulated platform for trading multiple traditional asset classes represented by a digital asset with fiat/crypto currency pairing trading which include currencies, security tokens and derivatives. As a fully-licensed digital assets exchange, CEZEX provides companies with a cheaper, faster, easier and shorter listing process while giving users and traders access to a wider variety of trading products under one platform all in a fully regulated, licensed environment.
Mr Enrique Gonzalez, Vice Chairman of ABACA:
“The upcoming launch of CEZEX is a significant milestone, not just for CEZEX, but also for CEZA and ABACA as CEZEX is the first licensed Offshore Virtual Currency Exchange and Asset- Backed Securities Token Exchange under the recently-announced CEZA -SRO rules and regulations governing OVCE operators.
We are pleased to launch our first OVCE operator out of CEZA. CEZEX is backed by Pinnacle Digital a digital assets exchange operator, and consultancy firm, IPE Global Pte Ltd. a Singapore based financial technology investment firm; the Phnom Penh Derivatives Exchange and SB Kaikaku Fund a venture capital fund affiliated with Softbank. This strong backing makes CEZEX one of the more renowned exchange players in the region.”
“The success of this launch, will advance Asia’s blockchain and crypto sector and attract more companies and start-ups to follow suit. We want to expand our portfolio of cutting-edge innovative companies and realise the collective mission of CEZA, CVA and ABACA to attract blockchain and fintech companies to bolster Philippines’ position as a global fintech and blockchain hub”, he added.
CEZEX will collaborate with a maximum of four sponsors/nominated advisors supported by CEZA to introduce and list security tokens and digital assets. Inbase Partners Limited, one of the sponsors/nominated advisors, are in position to work on the initial listing of products on the platform.
Mr Stephen Lynch, Inbase Partners’ Managing Partner, said “The blockchain smart contract model will revolutionise both corporate finance and the financial services industry as it will bring advantages such as asset interoperability, with different types of assets represented by the same medium in the form of security tokens, which are traded on the same platform as well as automated compliance and rapid settlement, fractional ownership, round-the-clock trading and increased liquidity. ”
He added, “Previously traditionally illiquid assets classes such as real estate, fine art, and early stage venture capital equity may now be tokenised and even further fractionalised to access earlier liquidity events”.
Jack Ser, CEO of CEZEX, said, “CEZEX functions in the same manner as a traditional exchange, where sponsors introduce listings, broker/dealers introduce customers, market makers and custodians support the activities of the exchange. CEZEX has built an ecosystem with a broker/dealer network throughout the Asian region and is expanding to enable fully regulated and compliant trading. ”
He added, “CEZEX adheres to the highest levels of KYC and AML compliance in a fully regulated environment to be able to offer digital asset trading for currencies (fiat/ cryptocurrency), security tokens and a very unique derivatives product.”