The Busan Blockchain Special Zone is ineffective due to government's ban on cryptocurrency
The Busan Blockchain Special Zone is ineffective due to government's ban on cryptocurrency
  • Dan Yoo (daniel@koreaittimes.com)
  • 승인 2019.08.06 06:03
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Experts point out that the Busan Blockchain Special Zone is not effective due to the government's ban on cryptocurrency. The Busan Metropolitan City in South Korea was designated as a special regulation-free blockchain zone by the Ministry of SMEs and Startups through the Special Committee on Regulatory Freedom at the Government Complex-Seoul on July 23. However, some pointed out that cryptocurrency was not allowed, making it an ineffective special zone.

Busan selected four major areas: logistics, tourism, public safety, and finance. Initially, 13 companies applied to participate in the Busan Blockchain Special Zone. The Busan Bank has released a local currency circulation-boosting service based on its digital ledger but changed its name to "digital voucher" following a ban on the use of cryptocurrency terms.

OkayCoin Kore is one of the companies excluded from the selection. Although the company introduced asset-backed securities that allow private capital to flow by documenting bonds, it was excluded from the screening process due to a review that said it conflicts with domestic laws such as civil and commercial laws. The prevailing view is that the fact that the exchange deals with cryptocurrency may have played a role in the limitation.

The official from the Busan Metropolitan Government said "The Busan Blockchain Special Zone project is scheduled to start at the end of this year." Also,  "Busan should review the proposals when the relevant ministries give their decisions on the special district participation such as acceptance or conditional acceptance." The review of the proposal by the ministries is mandatory. If the Korean Financial Services Commission does not approve the regulation-free zone on cryptocurrency, the Ministry of SMEs and Startups cannot change it to acceptance.

The newly selected companies that are giving incentives by the government in Busan Special Zone are BiPi & Solution, Busan Techno Park (Food & Water), Hyundai Pay, Korea Tour Pass (Tourism), Coinplug, Sarada (public safety) and Busan Bank.

 


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