Busan has been declared a “regulation-free” zone for blockchain development by South Korea’s national government, a move long expected but now formalized as part of a larger liberalization push.
Zug, Switzerland is said to be one of the models for the zone.
The Ministry of SMEs and Startups announced on July 24 that the second largest city in the country by population will host a wide range of blockchain offerings related to finance, public safety and tourism, though it stopped short of fully opening the market and allowing for international-level crypto initiatives, according to the Korea Herald.
A total of eleven regulations have been lifted for the project. It is expected that investors will move 29.9 billion won ($25 million) into the region by 2021 and development will be spread between the Munhyeon Innovation District, the Centum Innovation District and the Dongsam Innovation District.
BNK Busan Bank, a Korea Exchange-listed local institution, will supervise blockchain management as it relates to finance and might be developing a stablecoin pegged to the won.