South Korea’s Jeju Province To Establish Blockchain Regulatory Sandbox

Blockchain, News, Regulation | March 1, 2019 By:

South Korean blockchain firm ICON recently sponsored a briefing session for the establishment of the ‘Jeju Blockchain Regulatory Sandbox’ with private companies in attendance in Seoul.

The purpose of briefing session was to create a bridge between governments and companies pushing the growth of the local blockchain industry. More than 60 participants from 30 blockchain companies, including ICONLOOP, Deblock (Seoul Launchpad of ICX Station), ICON DApp partners including ‘Airbloc,’ ‘Cosmochain,’ ‘Webloc’, ‘SOMESING,’ ‘STAYGE,’ and ‘VELIC’, joined the briefing session.

The session was also observed by the Jeju Special Self-Governing Province of South Korea. During the event, Heeseop Roh, the Director of the Jeju Future Strategy Department, and Youngsoo Han, the Section Chief of the Jeju Future Strategy Department introduced their plans for the “Regulatory Sandbox for Regional Innovation and Growth.” The sandbox is expected to be implemented once the Act on Special Economic Zones for specialized regional development is enacted in April.

“Jeju aims to push for three special zones: blockchain, electric vehicles, and cosmetics, and blockchain is the first priority,” ICON said. “Jeju plans to apply for the special zone designation when the Districts Act is enacted, and currently handles interest and inquiries through its dedicated website. If Jeju applies for a blockchain special zone, the special zone will be selected after a final review by the Special Economic Zone Commission on Regulatory Freedom presided over by the Prime Minister in July.”

Once approved by the Ministry of SMEs and Startups, local blockchain companies will be able to utilize three types of regulatory special circumstances. These include regulatory verification, which will remove legal grey areas and create a simple system to verify whether or not a project can be authorized, temporary demonstration, which allows testing of an idea prior to specific regulation, and temporary approval, which allows for the creation of a market, under certain conditions, prior to the adoption of specific regulation. The companies will also receive financial support, tax support and reduction of levies.

“With these three regulatory exceptions in place, the blockchain industry in South Korea will have the freedom the thrive and innovate in a safe environment,” ICON said.