The blockchain body in South Korea wants to convince the authorities in Gwangju to convert the city into a specialized digital currency district. Converting the sixth largest city in South Korea into a digital currency hub would create a lot of jobs, according to KBEPA (Korea Blockchain Enterprise Promotion Association).
The blockchain association was founded in July 2018, and it is in collaboration with Universal Group. To turn the urban area into a Digital Currency-Valley District, the blockchain body is seeking an audience with Lee Yong-Sub – the major of Gwangju – as well as other politicians in the city.
South Korea’s Blockchain Body Plans to meet Major Lee Yong-Sub
In a statement, the blockchain association said: “We plan to meet Mayor Lee Yong-Sub to officially deliver the recommended plans to announce and transform Korea’s sixth largest city into a special governing city for digital currency. We also have plans of meeting with Kim Dong-Chan – the councilperson – to ask for his support.”
According to the blockchain association, the government of South Korea has been focusing on the manufacturing industry for creating new jobs and not paying attention to the fourth industrial revolution. By converting the sixth largest city in Korea into a digital currency hub, one million new jobs would be created in the city.
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Some countries have already started benefiting from blockchain technology and cryptos. Kim In-Ki – the CEO of Universal Group – gave the example of Malta and Estonia which have both greatly benefited from their early adoption of blockchain technology.
Malta and Estonia have been the forerunners of the fourth industrial revolution by attracting worldwide blockchain organizations to invest in their cities. They have enjoyed an enormous increase in the number of jobs created.
Kim said that the government of South Korea has been trying to create jobs by only concentrating on the manufacturing – shipbuilding or auto – sector, and ignoring the rise of the fourth industrial revolution. In addition, the blockchain association also criticized the stance of the government of South Korea towards digital currency and blockchain companies pointing out for instance that some domestic companies are forced to open trading platforms outside the country due to unfriendly regulations.
South Korea Rejects Digital Currency Trading Platforms as Venture Firms, Taxes to Double
KBEPA has had numerous unfriendly instances. One of those instances include a move by the government less than 3 months ago to exclude blockchain and digital currency startups from being categorized as venture firms. This means they are being denied vital incentives such as tax breaks.
During the announcement, the government said that the decision would instantly apply to blockchain and crypto firms that would be set up after the announcement. Existing blockchain and digital currency firms would no longer be categorized as venture firms in late 2018.
This resulted in an increase in corporate and income taxes paid by digital currency trading platforms. Their tax rate doubled. Upbit and Bithumb were some of the trading platforms that were set to be affected in the unfriendly move of the government.
The blockchain association is advocating for the increased adoption of blockchain and digital currency in the country as well as the creation of friendly regulations for digital currency and blockchain firms.