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Blockchain Association of South Korea Wants Authorities to Turn Gwangju into a Digital Currency Hub

The blockchain body in South
Korea wants to convince the authorities in Gwangju to convert the city into a
specialized digital currency district. Converting the sixth largest city in
South Korea into a digital currency hub would create a lot of jobs, according
to KBEPA (Korea Blockchain Enterprise Promotion Association).

The blockchain association was
founded in July 2018, and it is in collaboration with Universal Group. To turn
the urban area into a Digital Currency-Valley District, the blockchain body is
seeking an audience with Lee Yong-Sub – the major of Gwangju – as well as other
politicians in the city.

South Korea’s Blockchain Body Plans to meet Major Lee Yong-Sub

In a statement, the blockchain
association said: “We plan to meet Mayor
Lee Yong-Sub to officially deliver the recommended plans to announce and
transform Korea’s sixth largest city into a special governing city for digital currency. We also have plans of meeting
with Kim Dong-Chan – the councilperson – to ask for his support.”

According to the blockchain
association, the government of South Korea has been focusing on the
manufacturing industry for creating new jobs and not paying attention to the
fourth industrial revolution. By converting the sixth largest city in Korea into
a digital currency hub, one million new jobs would be created in the city.

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Some countries have already
started benefiting from blockchain technology and cryptos. Kim In-Ki – the CEO
of Universal Group – gave the example of Malta and Estonia which have both
greatly benefited from their early adoption of blockchain technology.

Malta and Estonia have been the forerunners
of the fourth industrial revolution by attracting worldwide blockchain organizations
to invest in their cities. They have enjoyed an enormous increase in the number
of jobs created.

Kim said that the government of
South Korea has been trying to create jobs by only concentrating on the
manufacturing – shipbuilding or auto – sector, and ignoring the rise of the fourth industrial revolution. In addition, the
blockchain association also criticized the stance of the government of South
Korea towards digital currency and blockchain companies pointing out for
instance that some domestic companies are forced to open trading platforms
outside the country due to unfriendly regulations.

South Korea Rejects Digital Currency Trading Platforms as Venture Firms, Taxes to Double

KBEPA has had numerous unfriendly
instances. One of those instances include a move by the government less than 3 months ago to exclude blockchain and digital
currency startups from being categorized as venture firms. This means they are
being denied vital incentives such as tax breaks.

During the announcement, the
government said that the decision would instantly apply to blockchain and
crypto firms that would be set up after the announcement. Existing blockchain
and digital currency firms would no longer be categorized as venture firms in
late 2018.

This resulted in an increase in corporate and income taxes
paid by digital currency trading platforms. Their tax rate doubled. Upbit and
Bithumb were some of the trading platforms that were set to be affected in the
unfriendly move of the government.

The blockchain association is
advocating for the increased adoption of
blockchain and digital currency in the country as well as the creation of
friendly regulations for digital currency and blockchain firms.

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