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Several blockchain associations in South Korea are rejecting a government plan that they fear suffocates industry innovation.
The groups are opposed to a proposal issued by the Ministry of SMEs and South Korean start-ups on Monday for an amendment to the country law on the existing venture business which, if implemented, would exclude the cryptocurrency trade from the SME category and start-ups and group them instead with entertainment activities and gambling.
Citing "the emergence of social problems such as speculation driven by trade in cryptocurrencies", the move by the ministry aligns with the plan recently announced by the government to revise existing laws to eliminate the encryption platforms of their tax benefits .
The proposal has now attracted criticism from several blockchain associations, reports CoinDesk Korea, which accuse the government of stifling innovation because the impacts of change can go beyond exchanges and influence the blockchain industry as a 39; whole.
Arguing that the amendment goes directly against a push of the country's president, Moon Jae-in, for regulatory innovation, the Korea Blockchain Association, the Korea Blockchain Industry Promotion Association and the Korea Blockchain Startup Association jointly sent a letter to the ministry Tuesday
"If this legislation is implemented, the national companies with the second largest number of blockchain technology patents after IBM will be excluded from classification as venture companies only because they manage a cryptocurrency exchange", they supported the associations.
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"Investment in research and development by companies based on blockchain technology will be hindered, as companies that are not able to receive political benefits and tax incentives will fail or move to the 39; 's. "
proposal – open to the public until 4 September – is the last research to curb speculation on the crypt in South Korea, f The measures following the beginning of this year have ordered that the exchanges offered services only to Korean residents and adopted a process of verifying the real name
Image of the National Assembly through Shutterstock
The leader of the blockchain news, CoinDesk is a media outlet that seeks the highest journalistic standards and adheres to a strict set of editorial policies. CoinDesk is an independent operating subsidiary of the Digital Currency Group, which invests in criptovalute and blockchain startups.
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