Busan, South Korea will soon become a blockchain center modeled after the famous Crypto Valley in Switzerland. This was announced at a thematic conference in Seoul.
The brave proposal was expressed by the chairman of the local crypto association Oh Jung-geun who is quoted as saying "We need a workspace to focus on the development of the Korean crypto industry, like the Crypto Valley in Switzerland."
The Crypto Valley Association was established in 2013. It is a nonprofit organization that creates a favorable ecosystem for the blockchain industry. The CVA includes several working groups that draft laws, support startups, research, and conduct industry events.
The Korean crypto enthusiasts plan to create a similar space in Busan. The headquarters of the new organization will be located in the coastal part of the city in the prestigious Haeundae district. The community has already christened the project "Crypto Beach."
The first objective of the Crypto Beach team will be the abolition of the ban imposed on ICOs, which the authorities introduced back in September 2017. According to Oh Jung-geun, this led to a massive outflow of companies that are forced to launch primary offers of coins in more favorable jurisdictions.
At the moment, the organizers of the Crypto Beach are preparing to discuss their project with the South Korean government. The meeting is scheduled for August 30th.
Despite a number of positive changes, however, it will be difficult to fundamentally change the country's policy towards the crypto industry, as recently the South Korean government announced that it does not plan to work on regulating the industry. The officials explained that the community could misinterpret such steps and perceive them as legitimizing cryptocurrencies. As a result, a real fever will start on the market, which can hurt people's financial positions.
As a result, the lawmakers have decided to shift all responsibility for the crypto sector to the financial regulators. The Korean Financial Intelligence (KFIU) has already stated that it will regulate crypto exchanges on par with banks. Now the government plans to adopt a number of laws that will give regulators the necessary powers to do so.
The example of South Korea demonstrates how reluctantly authorities are delving into new economic processes. Experts attribute this to the shortage of core specialists in the field of blockchain and cryptocurrencies, as well as a banal fear of losing votes to unsuccessful draft laws.