Jeju Province Governor Won Hee-ryong Tuesday made it clear that the island province wants to establish the Crypto Valley. The governor criticized the government for thwarting the development of blockchain and cryptocurrency.

In a speech Tuesday at the international conference, titled the Blockchain Seoul 2018, he likened the current Korean government to the U.K government in 1865. The U.K. government introduced the Red Flag Act, which restricted the speed limit of all automobiles to travel at a maximum of four mph in the country and two mph in the city. The law was designed to protect the horse-drawn carriages and promote the safety of pedestrians.

The act has put the United Kingdom behind Germany and France in the automobile industry, he said.

Won said, “The government tries to restrict the development of blockchain and cyber currencies out of concern over the recent speculation, but we should take note of the fact that the emerging token economy would replace the existing industries for another economic takeoff.’’

He also criticized the government for banning the initial coin offerings (ICOs), saying the prohibition came out of administrative expediency. The ban means the government has shut the front door so that nobody can move outside, the governor added.

Due to the strict ban, it is more expensive to buy cyber currencies, including bitcoin, in Korea than outside Korea, he said. It is called the Korean premium or ‘kimchi premium.’ Many scams linked to cyber currencies occur due to the prohibition, the governor said.

He urged the government to set transparent and predictable guideline to prevent cyber currencies from being used for money laundering and other financial crimes.

He said that the cyber currency market produced many harmful effects just because the market is at the initial stage. Through regulations, the government can establish a fair and transparent order for the cryptocurrency market.

He once again emphasized that the Jeju Island is an ideal place for Korea’s Crypto Valley. It is an international free city where a visa is not necessary for foreign visitors. The island can also enact an independent law for the promotion of the Crypto Valley, the governor said.