South Korea begins crypto, blockchain regulatory process

The South Korean government has officially recognised cryptocurrency and blockchain-related industries and is currently drafting new classification standards for this space.

The framework will consider cryptocurrency exchanges as crypto asset exchange and brokerage, an important redefinition that “recognises crypto exchanges as regulated financial institutions,” instead of their previous classification as “communication vendors.”

The final draft is expected to be ready by the end of July, according to the three Korean ministries working on the document: the National Statistical Office, Ministry of Science and Technology, and the Ministry of Information and Communication.

The move will reportedly be the foundation for policy making aimed at “blockchain promotion and regulatory framework.” It also includes blockchain systems construction, decentralised applications (DApps) development, and cryptocurrency exchanges and transactions.

South Korea is not alone when it comes to regulating the crypto space, as Japan is also working on implementing strict rules and policies to provide security to investors.

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