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.
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.
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.
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..
South Korea decided not to close cryptocurrency exchanges, subject to strict regulation The South Korean government is preparing to introduce a number of restrictions in the field…
NATO equipment supplier to build UK’s largest bitcoin farm British computer equipment supplier Bladetec announced…
Overstock will develop a cobalt tokenization and trading platform Private equity firm GSR Capital has entered into an agreement with…