On the road to blockchain unification
Three Korean government ministries, in particular, are collaborating to finalize the new blockchain industry's classification scheme. The final draft is expected to be completed by the Ministries of Information and Communication, Science and Technology, and the National Statistical Office by the end of July 2018.
The scheme will contribute to the development of policies concerning """"blockchain promotion and regulatory frameworks."""" It will also cover cryptocurrency exchanges, transactions, the development of decentralized applications (DApps), and the construction of blockchain systems. The draft will also divide cryptocurrency exchanges into two categories: crypto asset exchange and brokerage. This is critical because previously, cryptocurrency exchanges were regarded as """"communication vendors."""" They are now considered regulated financial institutions.
Blockchain regulations are being relaxed.
Things are getting better for blockchain as the South Korean government takes a more relaxed stance. Previously, the Financial Services Commission (FSC) prohibited ICOs due to officials' concerns about the negative effects of cryptocurrencies, even going so far as to say that cryptocurrencies might corrupt the nation's youth.
The FSC is regarded as the Korean regulatory authority in charge of blockchain policy. It is also the governing body of the Financial Supervisory Service (FSS), which has since changed its stance on cryptocurrency regulation.
""""The FSC revised its rules to implement strengthened policies to prevent or detect money laundering and illegal activities because the regulator is not opposed to cryptocurrencies,"" an official told the Korea Times.
""""Establishing unified rules is a difficult issue given the wide range of assessments between government agencies. This is why, as it is still in the early stages of fine-tuning guidelines, the country requires close international cooperation,"""" said another official.
Having said that, South Korea is reportedly adhering to G-20 policies, an international forum for governments and central bank governors. G-20 member countries' top financial policymakers have agreed to recognize and regulate cryptocurrencies as financial assets. While South Korea has yet to do the same, its decision to relax cryptocurrency regulations will likely benefit other countries that are warming up to the blockchain industry, as major exchanges are now looking to expand further into international markets in preparation for offering blockchain-based services in the Asian region."""