South Korea is one step closer to legitimizing blockchain in the country. The South Korean government has reportedly begun drafting a series of new industry classification standards to govern the country’s blockchain sector.
On the way to unify blockchain
Specifically, three Korean government ministries are working together to finalize the new blockchain industry classification scheme. The Ministry of Information and Communication, 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 outline will help provide the basis for policy making related to “blockchain promotion and regulatory frameworks.” It will also cover areas such as cryptocurrency exchanges, transactions, development of decentralized applications (DApps) and building blockchain systems. The draft will also classify cryptocurrency exchanges as an exchange and brokerage of crypto assets. This is very important since crypto exchanges were previously considered “communication providers”. Now, they can be considered as regulated financial institutions.
Easing of blockchain regulations
Things are getting even better for blockchain as the South Korean government aims for a more relaxed approach. Earlier, the Financial Services Commission (FSC) placed 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 Supervisory Service (FSS), which has since reconsidered its cryptocurrency regulatory policy.
“The FSC revised its rules to enforce stricter policies to prevent or detect money laundering and illegal activities because the regulator is not opposed to cryptocurrencies,” a Korea Times official was quoted as saying.
“Establishing unified rules is a complicated issue given the wider range of assessments among government agencies. This is why the country needs close international cooperation as it is still in the early stages of adjusting the guidelines,” another stated. official.
That said, South Korea is reportedly following the policies set out by the G-20 nations, an international forum for governments and central bank governors. The main financial policymakers of the G-20 member countries have agreed to recognize and regulate cryptocurrencies as financial assets. While South Korea has yet to follow suit, its move to ease cryptocurrency regulations will likely be beneficial to other nations warming up to the blockchain industry, as major exchanges now look to expand further in international markets on plans to offer blockchains. Asian region based services.