End Of Crypto In South Korea? South Korean Special Blockchain Zone Suffers Setback Due To Government Ban

South Korean Customs embargoes Importation of Cryptocurrency Mining Equipment Amidst High Interest

Cryptocurrency News Today – The Korean government launched a plan in 2018 to grow its blockchain industry by investing 1 trillion KRW in the technology. Unfortunately, the blockchain free zone is virtually empty due to the country’s ban on cryptocurrency. This ban has affected the numerous companies plan to launch private assets or what is now known as cryptocurrency. Cryptocurrency news today learned from the Korea IT Times last night that the free zone of Busan was likely to be ineffective regarding blockchains due to the strict regulations imposed on cryptocurrencies by the government.

Cryptocurrency Regulations – Cryptocurrency News Today – South Korea, Cryptocurrency, And Blockchain Technology

Cryptocurrency news today further learned that OkayCoin Core, a blockchain startup company was rejected during screening due to the ban on cryptocurrencies. OkayCoin Core was excluded by the screening committee even though OkayCoin was not into decentralization or assets offering initial-coin like other cryptocurrencies. OkayCore only created a system of creating asset-backed securities that would be acceptable across different wallets while at the same time storing the transactions automatically in a ledger. This system made OkayCoin guilty of the Korean government’s law on cryptocurrencies.

The Busan Metropolitan Government made it known that OkayCoin was their project which they had hoped would begin by the end of the year. They also announced that they were in support of the blockchain free zone. The Busan government agreed that they would look at the roadblocks and amend their proposals, taking into consideration the laws and regulations of the government.

The blockchain regulation-free zone of Busan had been created to enable work to be done in the areas of tourism, finance, public safety, and logistics. Over 10 companies agreed to open offices in the zone to make use of the low cost and low tax requirements. One such company to take advantage of the blockchain free zone was the Busan Bank, who had launched a cryptocurrency platform but had to change the project to cryptocurrency voucher to avoid the ban placed by the Korean government.

Cryptocurrency News Today – Cryptocurrency Regulations – Cryptocurrency Still Seen In Bad Light By Some Governments

The Korean government plans to invest 1 trillion KRW n the coming years but there are speculations on how successful the project would be if there were already problems at the early stage. The Bisan Bank is one of the only few companies that passed the screening and were given permission to trade in the blockchain free zone. Other companies listed are BiPi and Solution, Hyundai Pay, Coinplug and Nisan Techno Park.

Bitcoin (BTC) Price Today – BTC / USD

#NamePrice24H %
1
bitcoin
Bitcoin(BTC)
$8,241.23
3.27%

Korea isn’t the only country that has a negative view of cryptocurrency. The US president last month criticized the cryptocurrency industry, saying that it was a platform for criminal activities. Other financial institutions in the country also rose up to denounce the cryptocurrency industry. This made the government take a firm stand when Facebook announced its intention to enter the cryptocurrency industry. India also rose to impose a ban on cryptocurrency. Cryptocurrency enthusiasts, on the other hand, believe that no government could stop the advancement of the cryptocurrency industry. They stated that the cryptocurrency industry was here to stay.

What do you think? Are Cryptocurrencies going anywhere anytime soon? Can a single government stop blockchain technology from reaching its full potential? Share your thoughts in the comment section below.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.