Famous for being one of the progressive countries with a high percentage of cryptocurrencies enthusiasts within the population, South Korea is an important segment of the blockchain market. And that title comes from lots of technological development, crypto investments and large blockchain exchanges in the country that ranks the country in the 3rd position on Bitcoin adoption, behind its neighborhood Japan.
Currently, events, such as Korea Blockchain Week, are improving the development of cryptocurrencies in South Korea. The five-day event brings thousands of attendees, speakers and a packed schedule focused on the industry control and functional, aiming to debate what are the possibilities, risks, and opportunities surrounding the most controversial technology.
As a reflection of a government planning on further simulating blockchain growth, the has about 53 million people account for nearly 18% of all Ethereum trades and aware about that new toll. South Korean officials are likely ahead of many other countries in crypto regulation, experiments, and exchanges in particular. Recently, the country earmarked over $800 million for the tech sector. The amount is to be invested in development in the blockchain, AI, data and analytics. Also, the finance ministry revealed that it will be allocating about $8 to 9$ billion more over the next five years. The objective is to fund the growth through innovation.
However, South Korea regulations are strictly tough. Local cryptocurrency exchanges and ICOs were banned or are being shut down and under increased supervision. The concern of the Korean government is about tax evasions, illegal trades, tax evasion, and excessive speculation. Mainly due to the police investigation into Upbit, South Korea’s largest cryptocurrency exchange with a massive effect on markets.
Jea Edman, Block Seol organizing committee chairperson reported:
“The South Korean government instituted the ban as a reaction to problems within the ecosystem, such as hacking and fraud allegations […] However, the citizens of South Korea were already deeply invested in the blockchain, contributing greatly to the global crypto market. If you look at Bitcoin alone, South Koreans are responsible for 14 percent of that market.”
Despite all issues involving the bans and stringent rules, new policies including decentralized applications and blockchain platforms are still expected to come out. Exchanges are also set to be reclassified as financial institutions and will be regulated as such. While the blanket ban on ICOs has been lifted and Bitcoin now enjoys legal status as remittance method.
Therefore, the region is already in the midst of a building success in the blockchain. Locally, almost half of the workforce is already investing in blockchain and more than 20 percent of all the crypto trading is happening in South Korea. The country’s obsession with technology is making possible the blockchain progress while other countries still struggle in realizing the benefits of digital currencies and how to apply them in society daily routine.