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South Korea Reviews Its Stance on Crypto To Become Blockchain Haven

South Korea, the country that has been in the forefront of the crypto industry since the 2017 investor boom, is gradually changing its views regarding cryptocurrencies. While the lift on the ICO blanket ban was announced by the officials last month, the country has recently been vocal about its intention to lead the fourth industrial revolution, powered by blockchain initiatives.

Brief history of crypto regulation in South Korea

South Korea has been closely regulating the crypto industry. First, in July 2017, the government legalized Bitcoin as a remittance method, allowing fintech companies to process up to $20,000 worth of South Korean won in Bitcoin for users.

South Korea has been closely regulating the crypto industry. First, in July 2017, the government legalized Bitcoin as a remittance method, allowing fintech companies to process up to $20,000 worth of South Korean won in Bitcoin for users.

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 cryptolater in March 2018.

Around that time, according to the country’s self-regulatory Blockchain Industry Association(KBA), the country had more than a dozen cryptocurrency exchanges, including Bithumb, Korbit and Coinone. The demand for crypto was so high that cryptocurrencies were traded at prices more than 30 percent higher than in other countries.

Big plans for blockchain

On May 29, The National Assembly officially proposed once again legalizing domestic ICOs.

Indeed, South Korea has been nurturing big plans for blockchain and recently started to act on them. 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 (approximately $207 million) by 2022.

In May, even South Korea’s central bank began exploring the idea of using cryptocurrencies and blockchain. The government body turned to the technology in order to meet their goal of a cashless society by 2020. The major goals of the project are customer convenience and reducing the cost of producing physical currency.

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