- Companies in blockchain city’s special regulatory free-zone are not familiar with this technology according to a report
- The vast majority doesn’t plan adoption of blockchain
- Blockchain tech companies cite regulatory obstacles
According to the recent report from the Busan Research Institute (BRI), 62 percent of the companies in Busan do not know what blockchain technology is. This comes as a surprise because a year ago Busan was selected by the South Korean government to become a special “blockchain regulatory free-zone”.
As reported by local media, BRI’s survey has canvased the leadership of 100 companies prominent in their respective industries. 91 of them have stated that they are not planning to introduce blockchain technology.
Blockchain city in name only
Last year the Korean government selected Busan to become the hub of blockchain development. For this purpose, the city was selected to be designated as a regulation-free zone for blockchain technology, but the “Report on Activating the Busan Blockchain Free Regulatory Zone” paints a worrying picture. Companies in the Blockchain city put the blame for this situation on the government.
A survey of 26 companies in Busan involved in blockchain technology showed considerable obstacles to the adoption of blockchain. 23.1 percent of respondents cited regulation as the biggest difficulty, 19.2 percent lack of government policy support and uncertain marketability, 15.4 percent lack of technology and manpower, and 11.5 percent lack of project funding.
As a part of the development of this special economic zone, the city of Busan has started working on several projects. The federal government has also selected seven companies, including Busan Bank, to develop services based on blockchain technology, but none of them has yet come to market.
Wider adaptation is needed
The report concludes that a greater level of support for marketable services based on blockchain technology is needed from the government. Interested companies in “Blockchain city” are still burdened by unnecessary regulations.
For the development of this special zone, it is important to first establish a blockchain ecosystem and support the development of various services via provision of the government. For the further revitalization of the local industry, it is important to create a cluster of blockchain and related companies.
At the moment, the development of blockchain relates only to the sector of services, and that application in manufacturing is lacking. To achieve the wider adoption of blockchain technology, the government will need to attract both qualified manpower, and funding for future projects.