South Korea is one step closer to legitimizing the blockchain chain in the country. According to reports, the South Korean government has begun drafting a number of new industry classification standards to govern the country’s blockchain sector.
On the way to unifying 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 prepare 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 intermediation of cryptocurrencies. This is very important, as cryptographic exchanges were previously considered “communication providers”. Now, they can be considered regulated financial institutions.
Facilitate blockchain regulations
Things are getting better for the blockchain, as the South Korean government aims for 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 country’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 reconsidered its cryptocurrency regulatory policy.
“The FSC revised its rules to implement strengthened policies to prevent or detect money laundering and illegal activities so that the regulator does not oppose cryptocurrencies,” an official The Korea Times quoted.
“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 adjustment guidelines,” he said. another official.
That said, South Korea is following the policies set by the G-20 nations, an international forum for central bank governments and 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 nations that are heating up in the blockchain industry, as major exchanges are now looking to expand further into international markets with plans to offer blockchain- based services in the Asian region.