Seoul decided to provide the top-2 major city in South Korea (Busan) with the status of a regulation-free zone that will be aimed at blockchain development.
South Korea's Ministry of Small, Medium Enterprises and Startups announced that Busan will host some blockchain projects that will deal with financial issues, public security and tourism. At the same time, the regulator added that foreign crypto projects are unlikely to be approved with free access to the city.
For that purpose, the government has lifted 11 rules in total. Seoul expressed hopes that investments into the region may reach some $25 million by 2021. The financial sector will be monitored by BNK Busan Bank. At the same time, Hyundai Pay will be a supporter of payment tools and tourism development.
There will be an application opened for regional users via which they will be able to report in a video about natural disasters and crimes. Such reports will be rewarded with cryptocurrencies. After that, the initiative suggests the development of a database to store and share information.
However,r this is hardly a regulation-free zone in a very real sense. Specifically, ICO will remain banned in Busan. Cryptocurrencies will be mainly the way to encourage users and can be spent only in several locations. Local authorities highlight that this initiative should be considered as a crypto promotion.