Blockchain Industry is now legal in South Korea with Major New Classification Standards

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Seoul, South Korea –South Korea is now drafting a new major classification standard for its domestic blockchain industry.

Since last month, Three Korean ministries – the National Statistical Office, the Ministry of Science and Technology, and the Ministry of Information and Communication have been working to produce the final draft for a new blockchain industry classificatory scheme by the end of July.

The scheme will reportedly serve as a basis notably aimed towards “blockchain promotion and regulatory frameworks,” and covers areas including blockchain systems construction, decentralized applications (DApps) development, and cryptocurrency exchanges and transactions.

The draft defines cryptocurrency exchanges as crypto asset exchange and brokerage, which is an important redefinition that “recognizes crypto exchanges as regulated financial institutions,” as opposed to their previous classification as “communication vendors,” news outlet Hacked, reported.

This is the first time that the Korean government legitimized an emerging sector.

With further input from 43 government ministries and 17 regional municipalities, as well as enterprises and financial institutions, the initiative is said to be drawing on consultations with over 160 institutions to assemble what will be the country’s first statistical survey of the sector.

The government has subdivided its industry classification scheme into three sectors, with ten further subdivisions under the guidance of the Korean Standard Industrial Classification (KSIC). The subdivisions include detailed considerations of blockchain-powered infrastructure for DApps such as EOS, Ethereum and NEO, blockchain-based cloud computing services, and cryptocurrency mining.

The survey is also covering blockchain systems integration into existing industries, including the financial sector, security, insurance, copyright management, supply chain management, medical services, and software development.

Today’s news comes at a pivotal time for the South Korean crypto sphere. Recent high-profile cryptocurrency exchange hacks have necessarily prompted robust responses from local regulators: nonetheless, important positive news has been forthcoming from the government throughout spring, most notably the country’s plans to lift its notorious blanket ban on domestic Initial Coin Offerings (ICOs).

In late June, the Ministry of Science and ICT announced a major Blockchain Technology Development Strategy that aims to raise approximately $207 million by 2022, and since May, the country’s central bank has been exploring the idea of using blockchain in order to realize its project for a “cashless society” by 2020.

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