South Korea: Does Jeju Island Become Asian Malta?
RegulationBit News Today1 min read
Governor Won Hee-ryong formally requested that Jeju Island be designated a special blockchain and cryptocurrency zone in a meeting on Wednesday with high-ranking government officials, including South Korea's finance minister and deputy prime minister for the economy.
Jeju, the largest island off the Korean Peninsula and located 100 kilometres south of the mainland, has the potential to become a global blockchain hub. Governor Won believes the island's relaxed corporate structure and global focus already provide the framework for blockchain to flourish.
The governor aims to establish a joint task force responsible for advancing blockchain development, supported by government officials and industry experts. Additionally, the Korea Blockchain Enterprise Promotion Association—composed of former lawmakers, academics, and other specialists—has urged authorities to establish rules for the emerging technology to generate employment and position the country as a global leader in the fourth industrial revolution.
Although initial coin offerings (ICOs) were designated unauthorized fundraising activities in South Korea, prompting startups to launch abroad, Won says Jeju Island could be the designated area in the country to allow ICOs, preventing capital outflow. While South Korea has emerged as a global epicenter for blockchain development and cryptocurrency trading, the central government's stance on ICOs and strict regulatory scrutiny could be a major obstacle.
Despite the current regulatory environment, there is growing support, both locally and domestically, for Jeju's push to become a global blockchain hub. Leading blockchain companies, including Icon, a Korean blockchain project, are already in talks with the Jeju government. A Jeju provincial official explained that local authorities are carrying out a reorganization to set up a department specifically focused on growing the island's blockchain sector.
