(Seoul, South Korea) On June 22nd, 2018, the Ministry of Science and ICT of South Korea announced its plans for a blockchain development strategy, pledging at least $9 Million dollars, although that figure may change. This plan, according to the ministry, should run until the end of 2019 and is the result of its desire to pursue a “medium to long-term plan for expanding blockchain technology.”
Although $9 Million is incomparable to the $1.6 Billion fund backed by the Chinese government for blockchain projects, we are seeing a very similar pattern in countries across the globe. Although ICO bans, trading bans, and more strict regulations have been met with backlash, the governments are supposedly temporarily implementing policies designed to protect retail investors. Cash grab ICOs and obvious scams are still rampant in the industry. Yet, the governments are seeing the true potential of blockchain technologies and its ability to increase transparency and decrease fraud, leading to state sponsored such as this.
With South Korea’s intent to soon allow ICOs again, it will be interesting to see what type(s) of regulatory policies they will implement. We are watching these developments closely, and will update as the stories develop.
Although it is unclear where the funds will go and how it will be spent, it is safe to assume that the government’s more serious outlook on blockchain technology can have a positive ripple effect on existing projects like ICON, YGGDRASH, and MEDIBLOC.