South Korea plans to transform cryptocurrency regulations, adding that “the blockchain industry will be managed as a formal industry, starting with the government’s industrial classification, and conducting surveys and statistics.”
10 July, AtoZ Markets – According to the latest online reports in South Korea, the country is now undergoing a cryptocurrency policy transformation. The reports state that authorities are now moving on with changing the South Korean cryptocurrency regulations. The key purpose is to sync the regulations with that of G20 in order for easier transaction process.
South Korea Plans to Transform Cryptocurrency Regulations
The South Korean government has established a panel to look into crypto exchanges and their dealings. This move appears following the reports of multiple hacks and frauds in the crypto industry. The central bank of Korea has also released a report on using cryptocurrency as a payment method.
The new classification system in regards to the cryptocurrency and Blockchain activities has been designed by Statistics Korea, which is a division of the Ministry of Strategy and Finance.
Statistics Korea has been gathering the feedback from beta testers of the “news classification system.” The commentary will be reviewed by the ‘National Statistical Commission Policy subcommittee’. The assessment results will be published on 25th July. The publication reads:
“Cryptocurrency exchanges such as Bithumb and Upbit are expected to be officially classified as crypto asset brokers after the government’s current title of ‘virtual currency handler’ is removed…The blockchain industry will be managed as a formal industry, starting with the government’s industrial classification, and conducting surveys and statistics.”
Consequences of the economic and legal nature of crypto assets
One of the South Korean publications has reported that Blockchain platforms also feature unique industry classification criteria. The inconsistencies in the crypto industry related to the regulations pushed South Korean officials to collaborate with the Korea Communications department. The key function of this organization is to oversee major cryptocurrency exchanges. The announcement concerning the investigations reads:
“The on-site inspection mainly focuses on the technical and administrative protection measures for personal information, such as access control to the personal information processing system, prevention of tampering with access logs, encryption of personal information, and prevention of malicious programs.”
Following on this the report from the central bank assesses the long-term consequences of the economic and legal nature of crypto assets. It also looks into the key issues that are related to the central bank and its primary functions. It states:
“If the technical problems of virtual currency are resolved and the acceptability of virtual currency in the general society is increased, it cannot be ruled out that it can be widely used as an investment asset and payment means.”
Think we missed something? Let us know in the comments section below.