The world has been eagerly awaiting news of the Korean government regulating their blockchain technology and cryptocurrency guidelines. Experts have now stated that it should only be a matter of time before this happens. For onlookers, there has been a lot of speculation about the return of ICOs in Korea.
Most importantly, though, the Korean government could use their technological expertise to develop more blockchain technology. It was announced recently that the South Korean government will plans to invest $880 million in blockchain technology systemsnext year.
The Korean government has long been skeptical about cryptocurrency and blockchain. Since the technology is so new and so unknown, the Korean government didn’t know how to control it.
It’s for that reason that ICOs were banned in Korea and exchanges were cracked down on.
From an outsider’s perspective, it seemed like Korea’s startup ecosystem wasn’t friendly towards blockchain companies. However, in recent years, the blockchain ecosystem has become even more huge than the startup ecosystem. This all goes to show that the interest in blockchain in Korea has only ever grown, and has no plans on slowing down.
A Trillion Dollar Investment into Blockchain Technologies
Prime Minister Kim Dong Yeon addressed the administration’s investment plan for innovation and growth over the next five years. Investing a trillion won in 2019 is huge news for the Korean blockchain community. The investment isn’t just going towards blockchain technology, though. The investment will also go to big data, and A.I with at least $8 billion being invested in the next 5 years.
Kim Dong-yeon
“Focus on promoting big data and AI, developing blockchain technology to ensure data management security and boosting the sharing economy,”
said Kim Dong Yeon
This news comes when the crypto market is down across the board. However, despite the bear market, the cryptocurrency/blockchain industry in Korea is optimistic. Most are waiting on the Korean government’s regulations and guidelines. When this happens, investors in Korea and blockchain startups know that global companies and investors will flood into the Korean market. This is why so many global companies have been coming to Seoul this year. They want to have one foot in the door once news breaks regarding Korea’s regulations and guidelines for cryptocurrencies.
As cryptocurrency becomes less volatile and bad ICO projects get vetted out, it is only a matter of time before there is a crypto industry in Korea that fosters innovation and growth. The Korean government has been making efforts to put in practical regulatory frameworks for cryptocurrency and blockchain companies. Korean banks also have embraced cryptocurrencies. These banks have looked to find ways to incorporate them into their service.
Korean Government Crypto Guidelines Coming Soon
The Financial Services Commission (FSC) has legitimized the crypto industry by recognizing them as regulated financial institutions. When the cryptocurrency and blockchain bill is passed by the Korean government, all crypto exchanges will need to comply with the same security, internal management, and anti-money laundering policies of Korean banks and financial institutions.
There are even talks of exchanges requiring insurance for their crypto holdings. This is in case clients funds are hacked. Protecting the Korean public is their main concern. Therefore, this insurance will go a long way in protecting investors big and small.
The support from the Korean government will not just go to Seoul. Busan is looking to become the Silicon Valley of Crypto, “Crypto Valley”. They are looking to bring in cryptocurrency exchanges, startups, developers, and engineers. In addition, Jeju Island which has the authority to operate outside of the federal government intends to make Jeju a haven for cryptocurrency and blockchain businesses. So this is not just Seoul, but all of Korea that wants to embrace blockchain technologies.
Why Korea Needs to Embrace Blockchain Technologies
Korea knows that the technological revolution is coming. The internet has changed the way we communicate with one another and how we get information. Countries that took the lead in regards to internet technology have grown rapidly. Countries are always competing against each other to find the next great new technology and it is becoming clear that blockchain is that next technology.
Blockchain technologies can improve the relationship between the government and citizens. Public services will be streamlined. The government will function much more quickly, especially in regards to contract management.
Blockchain has evolved to not just hold financial transactions, but any kind of information. These days blockchain is being incorporated with other technologies such as A.I. and machine learning.
Businesses corporations and startups have seen the results that have come from using blockchain technology. That’s why so many are heavily invested in learning more about the technology.
However, the true game changers will be the governments. Once Korea incorporates blockchain and smart contracts to improve government operations, it will lead to the improvement of the public sector.
The Future of Blockchain in Korea
The Korean government, along with investors and other financial institutions, will continue to invest in blockchain technologies. This will cause a snowball effect as most or all companies will need to incorporate blockchain technologies if they want to work with the Korean government.
This will most likely lead to a Korean government blockchain network that will facilitate transactions. Whether it is in real estate, incorporating a business, or paying taxes, by removing the middleman, the days of long lines and paperwork will be of the past.
Imagine a Korea where Koreans can access their health records instantly. Vote on the internet and make payments instantly. The possibilities are endless. In the next 5 years, South Korea aims to be the crypto hub of not only Asia, but of the world. This amount of funding is going to make South Korea a real player and a country to be reckoned with.
Featured Image via startupradar.asia
