South Korea Reviews Its Stance on Crypto To Become Blockchain Haven

South Korea has been closely regulating the crypto industry.

Thus, the Bitcoin industry in South Korea continued to grow - in July 2017, the local exchange market already processed over 14 percent of global Bitcoin trades, being the third largest market behind the U.S. and Japan - but soon it was hit with the Chinese-like blanket ban on ICOs, instituted by the FSC. The agency explained the move with rising risks of financials scams, triggering sell-offs in the market.

Further, in December 2017, the government notoriously banned anonymous trading on local exchanges after the South Korean prime minister stated that Bitcoin could lead kids "To illicit activities such as drug trading" - foreigners and minors were also banned from trading as a result of the policy; government officials were forbidden to hold or trade crypto later in March 2018.

On January 22, the South Korean government also announced a substantial tax levied on local crypto exchanges.

South Korea has been nurturing big plans for blockchain and recently started to act on them.

South Korea's interest in blockchain was confirmed yet again on June 21, as the country's Ministry of Science and ICT announced a major Blockchain Technology Development Strategy that aims to raise 230 billion won by 2022.

In May, even South Korea's central bank began exploring the idea of using cryptocurrencies and blockchain.

In April, South Korean telecommunications operator SK Telecom announced the release of an asset management service with blockchain technology, as well as a platform for linking blockchain startups with investors.

When chairman of the Korea ICT Financial Convergence Association Oh Jung-geun revealed plans to launch a blockchain center in the city of Busan, designed after the Swiss Crypto Valley, he stressed that many South Korean companies are now forced to hold their ICOs overseas due to the government's forbiddance, depriving the country of substantial business taxes.

A stark example is Kakao's plan to hold their ICO abroad. Kakao is a major South Korean internet company and service provider for major South Koreans with its mobile messaging app KakaoTalk.