The South Korean government is due to announce a new classification system to break down and legitimize the crypto industry in the coming weeks. It is expected to create up to 10 different classifications to cover everything from Dapp development through to transactions. This is a huge step towards creating a regulated and safer crypto industry within South Korea. With it having the potential to spur other nations to begin the regulatory process.
Recognizing Crypto as A Financial Asset
According to government officials – the National Statistical Office, the Ministry of Science and Technology, and the Ministry of Information and Communication – a crypto exchange is classified as an “encryption asset brokerage and brokerage.” This is a total change in direction from the previous set of regulations, where exchanges were classified as “communication vendors”. This implies that South Korea is preparing to follow Malta’s example of creating a blockchain haven. Ultimately, it has the potential to be a place where companies can perform in the crypto space under supervision – creating a safer environment for the entire crypto world.
Carefully Crafted Classifications
The government initially launched its investigation back in April of this year, and has been consulting with a number of expert industry advisors since. These advisors have worked closely with the government to create a set of classifications that will help the crypto industry thrive and prosper in South Korea. Following a report by the EU, it looks as if a host of major countries are getting on board with crypto, and, if we’re lucky, we may soon see a harmonized global regulation for all crypto activities which would legitimize the industry and help to make it safer.
A Tough Time in South Korea
June of this year was a tough month for the South Korean crypto industry, as multiple exchanges were hacked, and a large sum of money was stolen. Thankfully, one of those exchanges managed to trace the money and return most of it back to its users. That being said, the reputation of cryptocurrencies in South Korea has certainly taken a hit. These new classifications could help South Korea regain its status as a crypto safe haven.
On June 21st, the South Korean Ministry of Science and ICT announced a Blockchain Technology Development Strategy that aims to raise 230 billion won ($207 million) by 2022. The money raised is expected to help train nearly 10,000 new blockchain professionals, as well as support the growth of six existing South Korean blockchain projects.