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Blockchain, Cryptocurrency-South Korea continued its progressive position towards the cryptocurrency and innovation it offers for the fintech by providing tax incentives for the development of blockchain.
Despite the cryptic markets entering their twelfth month of a bear cycle, with the price of Bitcoin slipping below $ 4000 after rallying to start 2019, the South Korean government has quietly added blockchain to the list of research fields and development that can benefit from a tax credit. The move is an attempt to increase interest in the space of the blockchain, while extracting the field for the potential innovation it could provide for financial technology, banking and best economic practices.
According to a report published on January 8, the local Ministry of Strategy and Finance announced the updated tax law, which will come into force next February. The news follows a similar report covered by EWN at the start of the week, which saw the city of New York open its first Blockchain Center for research and development, with the support of a $ 100,000 injection by the local government, despite the otherwise declining state of the industry.
While 2017 may have seen "blockchain" become one of the most abused terms in the business and finance world, with some companies coming to the point of changing their name to reflect technology (and a consequent rise in share price), the phrase fell out of fashion through the prices of the crash coins of 2018. Instead, companies have changed gear for the more technical "distributed ledger technology"To avoid associations with the movement of the negative price of crypto, while still taking advantage of innovative technology.
From IBM's IT giant to Facebook's social media behemoth, companies in many industries have found ways to implement blockchain and blockchain development, with the latter creating a division to capitalize on technology. Even with the connotations of cryptocurrency, as the main technology behind many tokens, the blockchain has found a renaissance in the bear market, as more and more investors appreciate the breadth of what can be achieved. Countries like South Korea, with their progressive approach to supporting innovation through technology, have found a way to encourage growth in space as opposed to pursuing restrictive cryptocurrency policies.
New York, in particular, was aware of the impact that cryptocurrency and blockchain could have on Wall Street and their banking empire, and carefully followed the regulation of the sector to suffocation. Even with the prices of the currencies seeking to continue their downward trend for the foreseeable future, the crypto investors have been largely encouraged by the growth in the recognition of tokens and blockchains. The price movements that have characterized the bull until the end of 2017, when the encrypted market capitalization has jumped to almost $ 1 trillion, appear to be a retrospective anomaly, at least in view of the relative influence of the sector. Instead, attention has shifted to organic growth in technology, with the adoption of Bitcoin and blockchain of less revolutionary change than incremental improvement.
Given the fall in the price of BTC under $ 4000, the industry is waiting on unstable ground for what it will take 2019.
