August 5, 2021

South Korea Established a Regulatory Free Zone for …

South Korea establishes a “Regulatory Free” Zone for Blockchain Development

Busan – the second largest city in South Korea – has been named by the country’s authorities as a “regulatory free zone” for blockchain development, CoinDesk writes..

On July 24, the Ministry of Small and Medium Enterprises and Startups announced that Busan will host a number of blockchain initiatives related to finance, public safety and tourism. Free access of foreign crypto startups is not provided for.

South Korea has established a 'regulatory free' zone for the development of the blockchain Busan - the second largest ...

In total, 11 regulatory requirements were removed to implement the plan. Investors are expected to invest $ 25 million in the region by 2021. BNK Busan Bank to Oversee Financial Sector Initiatives and Hyundai Pay to Support Payment Solutions and Tourism Development.

Residents of the region will be given access to an application with which they can transmit video evidence of natural disasters and crimes to the responsible authorities. A cryptocurrency reward system will be introduced to encourage citizen participation.

South Korea has established a 'regulatory free' zone for the development of the blockchain Busan - the second largest ...

South Korea has established a 'regulatory free' zone for the development of the blockchain Busan - the second largest ...

However, the name “regulatory free” zone does not quite accurately capture the essence of the idea. So, in Busan, it will still be impossible to conduct ICOs, and when working with cryptocurrencies, projects will be forced to adhere to conservative practices. In this case, digital currencies will act primarily as a tool for encouraging user participation and will be available for spending only in certain establishments. The authorities separately note that the innovation is not aimed at the distribution of cryptocurrencies.

South Korea has established a 'regulatory free' zone for the development of the blockchain Busan - the second largest ...

Busan has long been the center of trade, finance and innovation in South Korea. The city is developing certain projects related to the blockchain, in particular for use in the local port. The latest initiative is part of a government program to organize regulatory sandboxes in which innovative technologies and services can be tested without legal and bureaucratic restrictions..

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