Leading South Korean cryptocurrency exchange Bithumb is reportedly considering investing 10 billion won, around $8.6 million, in Busan city’s “regulation-free” blockchain zone.
According to South Korea’s Ministry of SMEs and Startups, the cryptocurrency would be investing via its GCX Alliance subsidiary, and could use the funds to launch several blockchain-based financial services in the city.
Bithumb and Korea’s Financial Services Commission are set to discuss the move in detail later this month. Busan is South Korea’s second most populous city, and was declared a “regulation-free zone” for blockchain development in August of last year.
Last year local news outlet DongA reported the country’s largest telecoms company, KT, was set to launch a blockchain-based stablecoin tied to the South Korean won in Busan to revitalize its economy. Its report read:
“Dongbaekjeon is a blockchain-based card-type local currency issued by Busan City to revitalize Busan's local economy and ease the management burden of small business.”
Bithumb is reportedly unsure about what business to pursue in Busan, but hopes it’ll be “a versatile and extensive project.” The move comes shortly after Korea’s National Tax Service hit Bithumb with a massive tax bill of 80.3 billion won, equivalent to $69.5 million.
The National Tax Service, according to reports, concluded bithumb failed to withhold the taxes of its foreign customers’ income, an obligation the exchange had. Bithumb was at the time planning to take legal action as it’s not proper for the NTS to “impose the withholding tax on the company as it pays the corporate tax and local income tax for its operating profit every year.”
Featured image via Pixabay.