South Korea Officially Recognizes Crypto Exchanges
The government of South Korea is officially recognizing cryptocurrency exchanges as entities in their own right, thereby cementing their position in the country’s economy. According to local news sources, this is the first time that the South Korean government has recognized the cryptocurrency sector as a legitimate industry.
A New Classification of Industry Standards
The government is now drafting a set of classification standards for the South Korean Blockchain and cryptocurrency industry. The new standard is to work as a foundation for all policy making targeted at Blockchain regulations and the promotion of the industry.
The industry classification standard is being segregated into 3 different segments, with each segment being further subdivided under the guidance of the KSIC (Korean Standard Industrial Classification). These subdivisions will have detailed considerations for various parts of the industry, such as blockchain-based infrastructure for DApps, cryptocurrency mining and even Blockchain-based cloud computing services.
Some of the changes that will be seen is that cryptocurrency exchanges, which were previously classified as communications vendors are now going to be classified as crypto-asset brokerages and exchanges. Blockchain platforms like EOS and Ethereum will now be known as Blockchain based software supply and development businesses.
Three ministries of the South Korean government have been working together since the end of last month to have the final draft of the new classification scheme ready by the end of July.
The ministries working together to make this plan a reality are the National Statistical Office, the Ministry of Information and Communication and the Ministry of Science and Technology. However, they are also taking inputs from 43 different government ministries as well as 17 regional municipalities, not to mention consultations from more than 160 enterprises and financial institutions.
Another Step in Legitimizing the Crypto Industry
This new classification standard takes the cryptocurrency industry one step closer to becoming completely legitimized in South Korea.
The process began early this year, when the South Korean government issued new regulatory measures to ensure that the cryptocurrency world complies with security as well as taxation requirements.
Not all the regulations imposed have been met with approval. For example, Ripple called for the relaxation of parts of the regulatory framework so that building systems would be easier in the still budding crypto industry.
The government also recognizes that some regulations – such as the ban on ICOs – may be too stringent, and are therefore up for review.
These steps also come at a critical time for the cryptocurrency industry in South Korea. With many exchanges being victims of hack attacks, the government has been forced to step up the formulation of regulations in this sphere.