South Korea’s Ban On Crypto Will Kill The Companies In The Busan Zone

South Korea’s ban on crypto is slowly destroying the blockchain companies in the Busan Zone which is a blockchain regulation-free zone as we are finding out today in the coming altcoin news.

The South Korean Ministry of SME’s and startups in 2018 designated about 1 trillion KRW for growing their blockchain technology industry mainly due to the ‘’Growth Through Innovation’’ plan. However, now the place is running dry of companies because they are unable to launch private assets from the ledgers they are creating. The assets are similar to native cryptocurrencies which according to the local laws they are still banned in South Korea.

The Korea IT times reported two days ago that the new blockchain-regulation free Busan zone will become ineffective as a result of the country’s existing harsh regulations that are hovering around cryptocurrencies and ICOs. The blockchain startup under the name OkayCoin Core had its screening rejected because of the harsh regulatory restriction which is a result from South Korea’s ban. The company god excluded by a selection committee since it had nothing to do with decentralized or initial coin offering assets. The company merely created asset-backed securities by combining cryptography and tokenization.

The Busan Metropolitan Government confirmed that the OkayCoin is their project and it is highly unlikely to begin by the end of this year. Aside from the regulatory roadblocks, the body commented that they will also review all proposals about cryptocurrencies saying that they do now have the authority to change the mind of anti-crypto lawmakers:

‘’Busan should review the proposals when the relevant ministries give opinions on the special district participation such as acceptance or conditional acceptance. If the Korean Financial Services Commission keeps an unacceptable position for ‘the special regulation-free on cryptocurrency, the Ministry of SMEs and Startups cannot change it to acceptance.’’

As we found out in the latest cryptocurrency news, the Busan blockchain-regulation free zone was created to allow development in sectors such as logistics, finance, safety, and tourism. More than 13 companies applied to open offices in the area and one of the companies even launched its own cryptography-enabled currency.