South Korea Offers Tax Incentive For Blockchain Development

South Korea is amongst the few countries that have welcomed cryptocurrencies and its underlying blockchain technology with open arms. In its newest initiative, the East Asian nation offers tax incentives for blockchain development.

While crypto markets are experiencing a bear for over twelve months, the South Korean government continues to trust the technology. Reportedly, in an attempt to boost interest in the space of blockchain, the government has quietly added blockchain to its list of research and development fields that can qualify for a tax credit.

According to a report published on Jan. 8, the updated tax law by the local Ministry of Strategy and Finance will be in effect from this February. A similar acceptance for the technology was also reported from New York, as earlier in the week the city opened its first Blockchain Center for research and development with the support of  $100,000 from the local government.

Blockchain vs the Distributed ledger technology

During 2017, the term “blockchain” experienced a high, so much so that some companies went on to change their name to reflect the technology. However, the 2018’s bear market has pushed companies to switch gear and employ another name for the technology, the “distributed ledger technology”. This was done in order to avoid association with the negative price movement of crypto while still continuing to take advantage of the technology.

Numerous companies including computing giant IBM, social media giant Facebook have ventured on the space to capitalize on the still-evolving technology. While cryptocurrencies have had a rough year in terms of price point, both it and blockchain have recorded progress in terms of use cases, adoption and acceptance.

Blockchain and cryptocurrency regulations

Countries like South Korea has given constant support and space to the innovative technology to grow, while others are busy curbing and pushing restrictive policies towards cryptocurrency. For instance, China had recently passed a policy that will allow the government to censor blockchain companies.

Notably, any policy developed in cities like New York, where the Wall Street and the banking empire is headquartered will have massive impact on both the crypto and blockchain ecosystem. It is fair enough that they want to tread with the space with regulations. When so much is at stake the governments have all the reasons to tread with caution.

While the regulators are trying to figure out a regulatory system for crypto and the blockchain technology, the adoption rate for both seems to be increasing by the minute.

Leave a Reply

Your email address will not be published.