Posted 2 years ago | by Ben Armstrong
South Korea Trying to Keep Crypto Companies Within Borders
South Korea is the latest country to allow regulation free zones for blockchain development. This is not an unprecedented move as both Switzerland and Russia have introduced such zones. The point of this move is to be able to keep crypto and blockchain companies within their borders instead of leaving for more crypto-friendly countries. When blockchain companies leave that means less tax revenue for the parent country.
On July 24th, the Korean Ministry of SMES & Startups declared that the city of Busan would be the first regulation free zone. Bussan has the second largest population in South Korea. There will be many businesses benefiting from this move in the areas of finance, public safety, & tourism. The BNK Busan Bank will oversee the blockchain management in regards to finance. There are even rumors it may be developing a won-pegged stablecoin.
There were a total of 11 regulations that were lifted. However, international-level crypto initiatives will still be subject to regulation. Initial Coin Offerings, or ICOs, will also not be allowed.
This is a great move for South Korea as it seeks to keep blockchain development in house. Many countries are waking up to the fact that blockchain, crypto, & Bitcoin itself are all here to stay. The countries who embrace it the quickest will reap big rewards down the road.
To see more details on this story and more, watch the latest video from BitBoy Crypto: