Why is South Korea’s Cryptocurrency and Blockchain Industry Booming?
By Latest In Crypto on Altcoin Academy
Blockchain implementations & the cryptocurrency industry, in general, is growing in adoption all over the world, but some locations, in particular, are experiencing huge growth and will be the driving force for the global industry.
One crypto hub is South Korea, which will be a mainstay for the cryptocurrency industry for years to come due to the key factors of high cryptocurrency adoption and interest, strong IT infrastructure, and relaxed regulation and taxation.
Cryptocurrency Adoption and Interest
The level of investment and interest from South Korea has been steadily growing, and South Korea now accounts for 30%+ of total cryptocurrency trading worldwide as well as being the 3rd largest market for Bitcoin trades in the world behind Japan and US. The slowing local economy and rising rates of unemployment has the population looking for alternative investments, with over 30% of full-time workers owning or trading crypto assets of some kind.
This interest is reflected in the government as well as the mainstream population, with the South Korean government planning to invest $3.5 million to create a blockchain-enabled virtual power plant in the city of Busan. It has also announced a 1 trillion won (USD $880 million) grant to spend on blockchain development in 2019 in an effort to revitalize innovation and local economy growth.
IT Infrastructure
South Korea is a country already known for its innovation in technology, being global drivers for consumer electronics, E-sports, and technology giants such as Samsung.
There are hundreds of established cryptocurrency exchanges to support the strong interest in cryptocurrency, with Bithumb, Upbit, Korbit, and Coinone as examples of the leading Korean exchanges.
South Korea is also home to a great number of developing blockchain projects, with examples being:
- Bithumb announcing a payment service in partnership with Qoo10 and Coinone working on its own blockchain project for global money transfers.
- The major city of Busan is also considering the launch of a local blockchain-based cryptocurrency in collaboration with BNK Busan Bank which will be a stablecoin pegged 1:1 to the local currency in the BNK Busan bank account.
- Busan also signed a memorandum of understanding (MoU) with Hyundai Pay in Feb 2019 to promote the blockchain industry
- KB Kookmin Bank signing an agreement with blockchain technology firm Atomrigs Lab for digital asset management and security solutions
Regulation and Taxation
South Korea’s relaxed regulation and taxation on cryptocurrency have been a major proponent of its mainstream and financial growth.
Since 2013 Bitcoin and other cryptocurrencies have been exempt from capital gains tax, which has allowed retail investors to flood into the market as they look for alternative investments to the lagging economy.
Busan, South Korea’s second-most populous city, and is currently the preferred bidder along with the Jeju province for a blockchain regulation-free zone that is set to promote blockchain technology in multiple industries
Originally published at https://latestincrypto.com.
