South Korea Is Seeking to Create Crypto Hub Cities
South Korea’s Blockchain association is lobbying Gwangju authorities to change it into Crypto valley. Six big cities in South Korea will be changed into cryptocurrency global Hubs. Such cities are idiomatically called crypto Hubs. According to the contributors, this plan will create numerous new jobs in South Korea. Based on estimations it is predicted that in the case of Gwangju development as the city in the fourth industrial revolution, about one million jobs will be created. Successful cases of this plan have been implemented in Estonia and Malta which led to attracting foreign investors and creating new jobs.
Korea Blockchain Enterprise Promotion Association (KBEPA), was formally started on July 19 of this year following a conference in Constitution Day and began working. This association was established aiming to improve South Korea condition as a forerunner power in Blockchain technology development. On the contrary to other similar associations in the world, KBEPA members include policymakers and active corporations in this field in Korea. This combination of the members dramatically helps to create a communication bridge between industry and government to improve the government’s supporting role from active companies in the area of Blockchain.
Korean government role in the codification of restrictive regulations for active cryptocurrency-related companies has recently been faced some criticisms. According to the activists in this field, such regulations have forced some of these companies to exchange currency out of Korea.
One of the government’s negative positions against active companies in this area that KBEPA could have pointed to is removing active companies in cryptocurrency conversion from venture companies. Venture companies are those high-risk ones which invest on new businesses with the potential to bounce and grow in value. The government supports such companies and enjoy financial and tax benefits. Currently, a number of South Korean cryptocurrency conversion companies such as Upbit and Bithumb which are among the greatest currency exchanges across the world, will be removed from venture companies supported by South Korea. It has led to the development of such companies outside of South Korea. As an example, Upbit has recently announced that it intends to enter the Singapore market. According to Upbit authorities, besides South Korea market uncertainty, Singapore can pave the way for its development as a bridge between South Korea and the world market. In spite of codifying suitable rules for the activity of such companies in Singapore, this country hasn’t grown sufficiently among pioneer ones in the cryptocurrency market.
Enforcing this rule in South Korea will double paying the tax of these companies. According to the specialists, such regulations will cause despair among such active companies and surely influence new businesses in the field of cryptocurrency and Blockchain in South Korea.