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South Korea takes action to further legitimize blockchain and unify policy

South Korea takes action to further legitimize blockchain and unify policy
"""Blockchain legalization in South Korea has advanced one step. Several new industry classification criteria are reportedly being drafted by the South Korean government to regulate the nation's blockchain business.

Moving toward unifying blockchain

In particular, three government agencies in Korea are collaborating to create a classification system for the emerging blockchain business. The final draft is anticipated to be completed by the National Statistical Office, the Ministry of Information and Communication, and the Ministries of Science and Technology by the end of July 2018.

The plan will aid in creating the framework for policies relating to ""blockchain promotion and regulatory frameworks."" Additionally, it will cover topics including bitcoin exchanges, transactions, the creation of blockchain systems, and the development of decentralized apps (DApps). The proposed classification of bitcoin exchanges as a type of brokerage for digital assets. This is crucial since, in the past, cryptocurrency exchanges were viewed as ""communication vendors."" They are currently regarded as regulated financial institutions.

Regulating blockchain more lax

As the South Korean government strives for a more relaxed attitude, things are improving for blockchain technology. In the past, the Financial Services Commission (FSC) banned ICOs because of concerns about cryptocurrencies' negative consequences, even going so far as to claim that they might corrupt the country's youth.

The FSC is thought of as the Korean regulatory body in charge of regulating blockchain policy. It also serves as the umbrella organization for the Financial Supervisory Service (FSS), which has since revised its approach to regulating cryptocurrencies.

An official was quoted by The Korea Times as saying, ""The FSC made adjustments to its guidelines to implement enhanced policies in order to prevent or detect money laundering and illicit activities.

Creating uniform guidelines is a challenging task considering the wide range of evaluations made by various government organizations. Because it is still developing its regulations, the nation needs close international cooperation, according to a different official.

Despite this, it appears that South Korea is adhering to the guidelines established by the G-20 countries, an international organization of governors of central banks and governments. The G-20's top financial decision-makers have decided to classify and oversee cryptocurrency as financial assets. Although South Korea hasn't yet taken a similar step, its decision to loosen cryptocurrency regulations will probably be helpful to other countries that are starting to take an interest in the blockchain sector. This is because major exchanges are now looking to expand further into international markets in order to provide blockchain-based services in the Asian region."""

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"South Korea takes action to further legitimize blockchain and unify policy" was written by Mary under the Business category. It has been read 33 times and generated 0 comments. The article was created on and updated on 16 November 2022.
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