The South Korean blockchain association intends to put pressure on the authorities of the city of Gwangju to transform the urban area into a "district specialized in the crypt-valley".
According to the Korea Blockchain Enterprise Promotion Association (KBEPA), transforming the sixth largest city in South Korea into a cryptocurrency hub will create numerous jobs. To achieve this, the blockchain organization, founded in July this year, in collaboration with Universal Group, is seeking an audience with the mayor of Gwangju, Lee Yong-Sub and other city politicians:
We plan to officially meet Mayor Lee to deliver the recommended plans to announce and transform Gwangju into a special government city for cryptocurrency. We also plan to meet counselor Kim Dong-Chan for support.
According to the lobby blockchain group, the South Korean government focused on the manufacturing sector for job creation and ignored the rise of the 4th industrial revolution & # 39 ;. Making Gwangju a crypto-valley district would create a million new jobs in the city.
The CEO of Universal Group, Kim In-Ki, gave the example of Estonia and Malta who both benefited from their initial embrace of blockchain technology:
Estonia and Malta were the forerunners of the fourth industrial revolution by successfully attracting global blockchain corporations to invest in their cities and enjoyed astronomical gains in the number of jobs created. Our government has attempted to create new jobs by focusing narrowly on the manufacturing industry – car or naval – neglecting the rise of the fourth industrial revolution.
In addition, the blockchain agency also criticized the South Korean government's position against blockchain and cryptocurrency firms, which for example pointed out that hostile regulations forced some national companies to open up foreign exchanges.
& # 39; Not Venture Firms Anymore & # 39;
Some of the unfriendly positions that KBEPA could have alluded to including a South Korean government move in less than three months to exclude start-ups in the blockchain and cryptocurrency sector have been classified as venture firms, denying them incentives such as tax breaks.
South Korea rejects cryptography exchanges as Venture companies, taxes to double https://t.co/Uhg5GC3T96
– CCN (@CryptoCoinsNews) 3 October 2018
At that time, the government indicated that the decision would immediately influence the encryption and blockchain companies created after the announcement. Existing startups would have been declassified as venture companies in the late 2018.
In particular, the move consisted in denying blockchain and cryptocurrency startups a 75% reduction in acquisition fees. In addition, corporate and income taxes paid by cryptocurrency grants doubled, while these companies also lost credit guarantees. Among the companies that have been set to be affected by the move are the main cryptocurrency exchanges based in the country such as Bithumb and Upbit.
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