South Korea legitimitize blockchain industry and introduces a new classification standards

South Korea legitimitize blockchain industry and introduces a new classification standards

The South Korean government is developing new classification standards for domestic blockchain industry.

Three Korean ministries – National statistics office, the Ministry of science and technology and the Ministry of information and communication is working since last month on the final draft of the new classification blockchain companies.

Reportedly, this scheme will serve as a basis for policy development, primarily aimed at “promoting the blockchain and creating a regulatory framework” and covers such areas as including the creation of blockchain systems, decentralized applications (DApps), as well as exchanges and other cryptocurrency transactions.

The project defines cryptocurrency exchanges as organizations working with cryptocurrency assets and provide brokerage services, which is an important override, which “recognizes cryptocurrency exchanges and exchangers as regulated financial institutions,” as opposed to their previous classification as “operators”.

In fact, it means full recognition of the new and growing industry at the state level.

Further to the initiative plan to connect 43 government ministries and 17 regional municipalities as well as businesses and financial institutions. The next step will be consulted with over 160 companies.

The new classification implies the division of all companies into three sectors and ten sub-sectors in accordance with the Korean standard industrial classification (KSIC). Sub-sectors include infrastructure systems for DApps, such as EOS, NEO, and Ethereum, cloud computing services based on blockchain and mining cryptocurrency.

This news is crucial for the South Korean cryptocurrency industry. Recent high-profile hacks cryptocurrency exchanges forced the government to react. However, reactions are not negative, rather the opposite – there were rumors that the government may permit the holding of ICO in the country.

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