Bithumb, one of the largest crypto exchanges in South Korea, has announced its massive investment into the Busan blockchain zone. It has reportedly pledged to invest approximately $8 million into Busan, the region which the South Korean government has declared as regulation-free zone for blockchain development.

The crypto exchange was recently hit with a $70 million bill by the country’s national task service, for withholding taxes on profits earned through international clients.

The South Korean authorities want blockchain and crypto-related projects to focus on the public sector. They want the projects to come up with new ideas that will help in tourism, consumerism and public safety.

The authorities had lifted 11 regulations for blockchain-based businesses and startups. However, some restrictions still exist, even though the region is called regulation-free. Initial Coin Offerings are prohibited among businesses.

The government had earlier revealed that, the profits earned by an individual from crypto are not subjected to income tax. There is no current legal definition of cryptocurrencies in the country.

However, the government noted that, they are studying approaches used by other major countries on how they should go about taxing cryptocurrencies. On that note, the Ministry of Economy and Finance is expected to propose a bill this year on the taxation of cryptocurrencies.

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