Korean Blockchain Groups Blast Plan to Strip Crypto Exchange Benefits

Several blockchain institutions in South Korea are pushing against a government strategy they dread will stifle business creation.

The groups are objecting to some proposal aired by South Korea’s Ministry of both SMEs and Startups on Monday to a change to the nation’s existing enterprise business law that could, if enacted, exclude cryptocurrency exchanges from the class of SMEs and startups and set them rather of gambling and entertainment companies.

Citing that the “emergence of social problems like speculation led by cryptocurrency exchanges,” the movement by the ministry contrasts with the authorities recently stated strategy to revise present legislation to strip crypto trading platforms in the tax advantages.

The proposition has drawn criticism from many blockchain institutions, CoinDesk Korea reports, which accuse the authorities of stifling innovation since the consequences of this shift may go beyond only exchanges and influence the blockchain sector as a whole.

Arguing the change goes straight contrary to a push from the nation’s president,” Moon Jae-in, for regulatory invention, the Korea Blockchain Association, Korea Blockchain Industry Promotion Association and Korea Blockchain Startup Association jointly submitted a letter to the ministry Tuesday.

“If this legislation is implemented, domestic companies with the second largest number of blockchain technology patents after IBM will be excluded from classification as venture businesses just because they operate a cryptocurrency exchange,” the institutions contended.

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The startup ministry’s proposition — available for public opinions until Sept. 4 — will be the newest trying to curtail crypto speculation South Korea, after steps early this year which ordered trades to provide services to Korean residents only and also to embrace a real-name confirmation procedure.

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Original post first appeared in https://www.coindesk.com/korean-blockchain-groups-blast-plan-to-strip-crypto-exchanges-of-benefits/

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