The Korean Cryptocurrency Industry Discovers the Exclusion Plan from the List of Venture Capital Companies
The Korean Cryptocurrency Industry Discovers the Exclusion Plan from the List of Venture Capital Companies

South Korea Crypto

In South Korea, block chaining and initial agreements are protesting a new government legislative proposal to exclude the industry from well-known venture capital firms.

In a proposal presented by South Korea’s SMEs and the Startups Department this week, the government announced that the agency plans to remove the blockchain industry from the official list of venture capital companies. enactment of existing law.

If the proposal is enacted, it will be initially adopted as a substitute for CryptoCurrency and instead of the bars sector, games and entertainment will be included in a handful of other companies on the list of exceptions, potholes, or as SMEs.

The proposal led to a rebellion in the blockchain industry, according to the Korean Times, with a number of pressure groups including Korea Blockchain Association, Korea Blockchain Industry Promotion Association and Korea Blockchain Starter.

“The measure will deter the industry as a whole,” pressure groups said in a press release.

First of all, companies and companies operating in the sector will no longer be able to benefit from the tax advantages if they are excluded from the list of listed venture capital companies in case the proposal is enacted.

Pressure groups have been added to the joint press release:

“If the revision is enacted in the National Assembly, a number of blockchain companies will not be eligible for various tax advantages, which will ultimately force foreign countries to move their investments and R & D.”

The restrictive policy for the blockchain sector emerges, despite the promise of the national government to reach a budget of $ 1 trillion ($ 885 million) for the development of certain technologies, including the block chain in 2019.

The proposal, which is open to comments until early September, comes at a time when South Korean legislators are rushing to set the cryptographic currency and the ICO industry at the national level. In a comprehensive policy decision earlier this year, regulators decided to ban anonymous cryptographic transactions through the country’s stock exchanges. The authorities demanded a real name trading system with the same name of a cryptographic merchant’s accounts and the accounts of the dependent bank where trust funds were issued or withdrawn.

Meanwhile, outside the Korean peninsula, about 400 kilometers south of Seoul, Jeju Island wants to go beyond this history by trying to open its shores to the block industry chain. . The central island has offered a plan to become a special area for the “blockchain and cryptomonnaie” – the governor Won Hee-ryong, the main island of Jeju Island – Jeju Autonomous Island. The first money offers (ICO) for collecting funds in the island despite the permanent ban of the continent.


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