Jeju Self-Governing Province Governor Won Hee-ryong made a formal proposal to form a task force which is participated in by both the government and Jeju Island in order to make the island “Special Blockchain and Cryptocurrency Global Ecosystem Zone.” He also said that Jeju Island will step up to remove all regulations on blockchain and cryptocurrency, including initial coin offering (ICO), based on the legal position as “free international city, Jeju.”
Through this, Won is planning to not only attract global cryptocurrency exchanges, like Binance, but also actively help domestic companies, which have indirectly pushed forward with an ICO by setting up their local subsidiaries in Switzerland and Singapore, lead the global blockchain and cryptocurrency markets using Jeju Island as a base.
At a joint meeting of economic ministers and governors on innovative growth presided over by Economy and Finance Minister Kim Dong-yeon at the Sejong Convention Center in Sejong City on Aug. 8, Governor Won said, “We should designate Jeju Free International City as the Special Blockchain and Cryptocurrency Global Ecosystem Zone. The first step is to form a Jeju-government joint task force to operate Jeju Island as the special blockchain zone.
In regard to controversy over an ICO, he stressed, “We should allow innovative entrepreneurs to raise funds through virtual currencies by accepting the blockchain and cryptocurrency ecosystems as soon as possible. He pointed out the current government’s contradictory policies that promote the blockchain industry while prohibiting the cryptocurrency market.
Governor Won also said, “There are negative issues for the blockchain market but technical imperfection is being solved at a fast pace. Some side effects from cryptocurrency transaction process are problems about the market order.” In other words, speculation and money laundering by misusing virtual currencies are a serious crime but they are not problems about cryptocurrency itself, according to him. He added, “In a bid to correct the cryptocurrency market order, we should bring blockchain and cryptocurrency into the regulatory system and put proper regulations on them. In this way, it is more effective in terms of industry promotion.”
Governor Won repeatedly suggested to make use of Jeju Free International City as the blockchain and cryptocurrency regulation free zone and the test bed. He said, “I think it is impossible to perfectly design regulations related to blockchain and cryptocurrency due to rapidly changing technologies and market conditions. Jeju Island will become the first “rule maker” and dynamically reform the system.”
Currently, Jeju Special Self-Governing Province has the status of “free international city” that can test and give shape to new business models and related regulations. In short, the province has the responsibility to repair various regulations on new industries on the preferential basis in accordance with the clause to “propel regulation liberation” for related laws. .
Governor Won said, “We need to designate Jeju Island as the special blockchain and cryptocurrency regulation zone and then allow negative regulations as soon as possible to promote the blockchain industry and maintain market order. We will decide on the standard of virtual currencies whether they are a type of securities or barter of goods (utility) first and then consider regulatory models.”