South Korea is one more step towards the legitimacy of the blockchain in the country. According to reports, the South Korean government has begun drafting a number of new industry classification rules to govern the country’s blockchain sector.
On the road to unify blockchain
Specifically, three Korean government ministries are working together to finalize the classification scheme of the new blockchain industry. The Ministry of Information and Communications, the Ministry of Science and Technology and the National Statistics Office are expected to produce the final draft by the end of July 2018.
The scheme will help provide the basis for making policies related to the “promotion of the blockchain and regulatory frameworks.” It will also cover areas such as cryptocurrency exchanges, transactions, decentralized application development (DApps) and building blockchain systems. The draft will also classify cryptocurrency exchanges as the exchange and brokerage of cryptocurrency assets. This is very important, as cryptographic exchanges were previously considered to be “communications providers”. They can now be considered regulated financial institutions.
Facilitate blockchain regulations
Things are looking even further for the blockchain, as the South Korean government seeks a more relaxed approach. Earlier, the Financial Services Commission (FSC) imposed a ban on ICOs, as officials were concerned about the adverse effects of cryptocurrencies, going so far as to say that cryptocurrencies could corrupt the nation’s youth.
The FSC is considered the Korean regulatory authority that oversees blockchain policy. It is also the governing body of the Financial Supervision Service (FSS), which has since rethought its policy regulating cryptocurrencies.
“The FSC made revisions to its rules to implement strengthened policies in order to prevent or detect money laundering and illegal activities so that the regulator does not oppose cryptocurrencies,” an official from The Korea Times was quoted as saying.
“Establishing unified rules is a complicated issue given the wider range of evaluations among government agencies. That is why the country needs close international cooperation, as it is still in the early stages of the development guidelines.” , said another official.
That said, South Korea is reportedly following the policies set by the G-20 nations, an international forum for governments and central bank governors. Leading financial policy makers in G-20 member countries have agreed to recognize and regulate cryptocurrencies as financial assets. While South Korea has not yet done the same, its move to ease cryptocurrency regulations is likely to benefit other countries that are heating up in the blockchain industry, as major exchanges seek to expand. -even further into international markets in their plans to offer blockchain. services based in the Asian region.