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South Korea’s Busan Wants a Local Cryptocurrency For Itself

03 July 2019 12:15, UTC

According to a report from ETNews, Busan, South Korea’s second largest city in terms of population is mulling over the decision to implement a local cryptocurrency in order to revive its economy.

South Korea is notorious for its aggressive regulatory stance towards cryptocurrencies, all but banning the digital assets. Every anonymous transaction goes through an ID check which is then siphoned towards the local taxing agency for better control.

Despite these steep regulatory frameworks, the city of Busan still considers the blockchain as a perfect platform to launch their new development phase of the local economy. The idea was put forward by Busan authorities but it has definitely been supported by the local bank, BNK Busan, which is in direct collaboration with the city’s authorities.

Busan wants a stable coin

Busan is requesting the implementation of a stablecoin which will be pegged to the local currency. When it comes to uncertainties about the anonymity of the project, Busan says it has it covered as it was chosen to be the next regulation-free zone for the blockchain in South Korea.

It’s not clear whether or not the blockchain will give Busan what it wants in terms of economic development, but having the title of a blockchain regulation-free zone it is sure to receive an influx of applications of local crypto companies especially Binance, which wants to have a much better grip of the East-Asian region.

The groundwork seems to have already been laid as the South Korean government is planning to invest around $3.5 million in Busan to create a blockchain enabled virtual power plant.

Outside resistance?

Busan’s initiative may be opposed by the Japanese regulator. Although its seems like an infiltration in foreign affairs the Japanese financial regulator has its own security issues when it comes to blockchain, especially with the taxing laws.

Having a regulation-free zone so close to Japanese soil would definitely foil the plans of local authorities, therefore, there may be some talks that guarantee the documentation of any and all Japanese customers or Busan crypto users should the need arise.

Image courtesy of Busan Cryptocurrency