After a Long Wait, South Korea Recognizes Cryptocurrency Market

In what will come as a major relief, South Korea has finally recognized the cryptocurrency market, after many months of red and green.

According to a sources, The BChain, the government will announce an industry classification system that will classify the blockchain related industry into 10 sub-categories, including blockchain system, DApp development and password currency transaction.

As welcoming as this step is, this move has not completely out of the blue. In May, Crypto-News India had reported on the possibility of South Korea recognizing the cryptocurrency market. We had said, in the view of the upcoming elections, the country may move towards pro-crypto.

Mike Hwang, an academician at the Sogang Machine Learning Lab, said, “I am working on a blockchain project with the Korean government which will shape how future elections are held. Given that there is an election next month, there is a huge possibility that the Korean government may deregulate crypto and ICOs.”

A blockchain technology industry classification adjustment has been set up by the National Statistical Office, the Ministry of Science and Technology, and the Ministry of Information and Communication, revealed a government official.

Another news portal, Korea Times reported that the Financial Services Commission (FSC) which monitors policies pertaining to finances and issues guidelines to another body Financial Supervisory Services (FSS), has ‘revised’ the guidelines concerning all the current activities of Korea’s cryptocurrency exchanges.

A Korean official said, “The FSC made revisions to its rules to apply strengthened policies in order to prevent or detect money laundering and illegal activities because the regulator isn’t opposed to cryptocurrencies.”

Seconding his opinion another official added, “Establishing unified rules is a complicated issue given the broader range of assessments between government agencies. This is why the country needs close international cooperation as it is still in the early stages of fine tuning guidelines.”

However, the duo added that the FSS and the FSC will not change the government’s stance on cryptocurrencies as it is tough to value them as ‘financial assets.’