South Korea’s political leadership seriously is looking at next generation technologies. There have been two major announcements from the South Korean government. One was positive and and the other negative. However, we believe that the Country understands the priorities and importance of Blockchain technology and is working towards it.
The South Korean government announced that it will not be including any cryptocurrency exchange from the legislation of venture businesses. The Ministry of Small and Medium Enterprises and Startups published that cryptocurrency exchanges are not a target for the South Korean Government to encourage as a venture enterprise.
The South Korean Government is closely watching the blockchain industry. In the beginning of the Year, South Korea planned to ban the cryptocurrency trading. The result of this was bitcoin prices going further down plummeting and throwing the crypto market into turmoil. Later government official, Kim Dong-yeon commented that – “There is no intention to ban or suppress cryptocurrency (market),” Kim said, adding the government’s immediate task is to regulate exchanges.
The South Korean Government acknowledges the importance of proper regulatory framework to watch the local cryptocurrency market. In June 2018, South Korean crypto exchange Bithumb says $30 million stolen by hackers which immediately came after the previous hack of more than $40 million from the Coinrail platform. Bitcoin has fallen more than 10% on when the market understood the security breach of Coinrail platform.
South Korea’s government set aside the ₩5 Tn Won (which is approximately $4.4 Bn) budget toward its ‘Growth Through Innovation’ Investment Plan. The Country is looking to develop eight domestic industries including the blockchain industry.
The announcement consisted of:
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