This week, the Korean government have revealed that they plan to loosen cryptocurrency regulations in Korea. They’ve made this decision to align cryptocurrency regulations ni Korea with those of the G20, in the hope that the changes will allow for simpler currency transactions.
Despite Korea’s technological advancements, the country has been slow to adapt to the use of cryptocurrency. Korea’s media and government worry that crypto could be used by the public for money laundering or tax evasion. However, Korean officials are now emphasizing that they’re not completely opposed to digital currencies.
In order to allow cryptocurrency to be used lawfully in Korea, the government has appointed a dedicated cryptocurrency exchange panel. As well as this, the Bank of Korea has even released a report about using cryptocurrency as a means of payment.
The government has also spoken about giving ICOs legal status. Hong Eui Rrak of the ruling Democratic Party stated that lawmakers are currently working on legislation that’ll lift the government’s previous ban.
Hopefully, these positive announcements show that the Korean government is willing to make Korea a more crypto-friendly country.
New Crypto Classification System in Korea
Statistics Korea will be in charge of creating a cryptocurrency classification system. They have already begun reviewing the system and are set to publish their findings on the 25th July.
Statistics Korea has reported that:
“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.”
Following the recent crypto exchange attacks in Korea, there have been efforts put in place to monitor exchanges and their practices. The announcement regarding this decision states that:
“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.”
In the future, cryptocurrency exchange platforms will use sophisticated management systems like those used by banks.
What About Other Blockchain Related Products in Korea
The new regulations don’t just concern cryptocurrency exchange platforms. The government will loosen the rules for almost all blockchain related products. They plan to distinguish between blockchain related products and cryptocurrency exchanges in their regulations.
The new cryptocurrency regulations in Korea will label exchange platforms as “Cryptocurrency Exchange and Brokerage”. Other blockchain related products, such as dApps, will be classified as “Blockchain Software Development and Integration.”
Hopefully, these new cryptocurrency regulations will allow Korea to truly excel in their major technological industries.
Let us know: What Do You Think of the New Cryptocurrency Regulations in Korea?