Busan, a bustling city in South Korea, is embarking on a groundbreaking initiative aimed at developing a city-level blockchain mainnet, heralding a new era of seamlessly integrated blockchain-based services that harmonize with various mainnets, including industry giants like Ethereum [ETH] and Cosmos [ATOM]. Recent revelations from a local news outlet shed light on Busan City’s strategic roadmap, articulated through the “Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule.”
Prior to this bold move, Busan City had earned recognition as a special blockchain regulation-free zone and undertaken various blockchain projects, including initiatives like B-Pass and digital vouchers. However, the utilization of distinct blockchain mainnets for each project created an inconvenient and disjointed user experience [UX].
In response to this challenge, Busan City resolved to develop a mainnet capable of achieving national blockchain standard status. This endeavor is aligned with the concept of an “open blockchain” since both Ethereum and Cosmos are public blockchains offering transparent access to transaction data.
Furthermore, Busan City is actively engaging in the establishment of a blockchain trust framework [BTF] that aims to enhance the quality of private services, promote seamless interoperability between services, and establish benchmarks for blockchain technical systems, performance, and security. These standards will be applied to public services within Busan City.
It’s worth noting that South Korea has a significant presence in the cryptocurrency space, with individuals and corporations holding substantial digital assets, accounting for a substantial portion of their overseas assets. However, the crypto landscape has not been without its challenges, including the highly publicized issues surrounding TerraUSD and Luna in May 2022, which drew considerable media attention.
South Korea’s Crypto Landscape & Regulatory Developments
Additionally, South Korean authorities have intensified their efforts to regulate the crypto sphere, including measures to track and freeze assets related to North Korea, which is notorious for its illicit weapons program. The government has also taken action against tax evaders, resulting in the confiscation of millions of dollars in cryptocurrency.
In the realm of cryptocurrency taxation, South Korea has postponed the implementation of a 20% tax on crypto gains until July 2023, originally slated for early 2023 but now delayed to 2025.
As a crypto-friendly nation, South Korea, including cities like Cheongju, has demonstrated its commitment to enforcing tax regulations related to cryptocurrency holdings, emphasizing its intention to begin confiscating cryptocurrency from local tax delinquents starting in August 2023.