South Korea Set To Offer Legitimacy To Cryptocurrency And Blockchain Related Industries

Media outlets reported that South Korea has begun taking steps to accord cryptocurrency exchanges the status of legal entities. Sources claimed that the steps are being  taken in a bid to establish a formal and strong foundation for granting legitimacy to cryptocurrency and blockchain technology in the country.

Cryptoassets Exchanges and Brokerages

A South Korean media agency reported specifically that the crypto exchanges would be regarded as crypto asset exchanges and brokerage as  a move by the government towards implementing a new system of classifying industries related to blockchain.

It was reported that blockchain and cryptocurrency platforms such as Ethereum would come under the classification of “Blockchain-based software supply and development businesses”. Complete details of the classification is expected to surface before the month ends.

Unit takes Steps to regulate cryptocurrency exchanges

The news of the proposed classification is coming shortly after the Korea Financial Intelligence Unit reportedly announced that it would begin the regulation of cryptocurrency exchanges in a manner similar to how it regulates banks, as well as an enforcement of anti-money laundering policies on the crypto exchanges.

Earlier in the year, South Korea seemed to be undertaking actions geared towards curbing cryptocurrency. The actions reportedly triggered public concern that the government was trying to completely ban cryptocurrency exchanges in the country. There were several local criticisms which prompted the office of South Korea’s President to widely announce that no such plans existed.

It will be recalled that the country already imposed a ban on initial coin offerings, but local media outlets have stated that the government is beginning to ease its position. Sources claimed that the legislative arm of government has begun considering legislations that permit ICOs, provided that specific protections are made available to investors.