South Korea's Jeju Island is taking significant steps to establish itself as a "Blockchain Special Zone," potentially becoming the only region within the country where Initial Coin Offerings (ICOs) are legally permitted. This initiative marks a pivotal move in fostering blockchain technology development domestically.
Overview of Jeju Island's Blockchain Initiative
According to reports from Korean media outlet etnews, Jeju Special Self-Governing Province is actively推进 the creation of a dedicated blockchain district. The detailed implementation plan is scheduled for release by the end of next month. Numerous domestic and international companies preparing for ICO projects are closely monitoring developments in Jeju's blockchain zone.
By revising special regulations, Jeju Island aims to permit ICOs within its jurisdiction and integrate blockchain technology across all local industries. An official from the Electronics and Telecommunications Research Institute (ETRI) stated, "Selecting Jeju as the national blockchain special zone means applying cryptocurrency systems to various sectors—from document management to tourism, commodity circulation, and origin certification."
Strategic Implementation and Leadership
Jeju Island has established a specialized blockchain department tasked with finalizing and announcing the specifics of the blockchain special zone plan by the upcoming month's end. Governor Won Hee-ryong envisions transforming Jeju into a world-class blockchain hub, dubbing it a premier "blockchain city." Additionally, he announced plans to create a dedicated fund and launch a digital currency named "Jeju Coin."
On the 19th, Jeju Technopark hosted its first policy workshop. During the event, blockchain experts proposed developing Jeju into a blockchain special zone that surpasses Malta, often referred to as the "blockchain island."
Global Context: Learning from Malta
Malta, a Mediterranean island nation, gained prominence in the blockchain space when its parliament approved comprehensive blockchain legislation on February 16, fostering industry growth. Following the Maltese government's release of three draft bills, dozens of companies, including Binance (the world's largest cryptocurrency exchange by trading volume), OKEx (the third-largest), and Neufund (a blockchain-based equity fundraising platform), announced their relocation to Malta.
Historical Shift in South Korea's ICO Policy
Just one month prior to Jeju's announcement, at the "2018 Global Blockchain Conference" held in Seoul, Oh Jung-geun, Chairman of the Korea ICT Financial Convergence Association, revealed plans to build a blockchain center modeled after Switzerland's "Crypto Valley." Established in March 2017 with Swiss government support, Crypto Valley explores blockchain and cryptocurrency-related technologies and businesses.
This represents a notable shift from the previous year, when South Korea contemplated banning ICOs entirely. As talent and capital increasingly moved overseas, the government recognized the negative implications of a blanket prohibition. Consequently, instead of enforcing a strict ban, South Korea now allows citizens to invest legally in foreign ICO projects.
Implications and Future Outlook
While South Korea's stance on ICOs had previously been ambiguous, Jeju Island's proactive establishment of a blockchain special zone demonstrates a committed step toward embracing blockchain technology nationally. This initiative not only aims to attract global blockchain enterprises but also positions Jeju as a innovative financial and technological hub.
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Frequently Asked Questions
What is a Blockchain Special Zone?
A Blockchain Special Zone is a designated area where blockchain technology and related activities, such as ICOs, are legally permitted and encouraged through supportive regulations and infrastructure.
Why is Jeju Island suitable for a Blockchain Special Zone?
As a self-governing province, Jeju has the authority to enact special laws, making it an ideal testing ground for innovative technologies like blockchain without immediate nationwide regulatory constraints.
How does Jeju's initiative compare to Malta's?
Jeju aims to surpass Malta by creating a more comprehensive ecosystem, integrating blockchain across all industries and establishing a local cryptocurrency, thereby fostering broader adoption.
Are ICOs legal throughout South Korea?
Currently, ICOs are only permitted within Jeju Island due to its special legal status, while the rest of South Korea maintains restrictions.
What industries will benefit from Jeju's blockchain integration?
Sectors such as tourism, document management, commodity circulation, and origin certification are expected to see significant advancements through blockchain implementation.
What is Jeju Coin?
Jeju Coin is a proposed digital currency specific to Jeju Island, intended to facilitate local transactions and promote economic activity within the blockchain ecosystem.