South Korea Making Step to Legitimate Blockchain Industry

Seoul dawn of the blockchain industry - CoinShot

As reported by the news release BChain yesterday, July 5, the government of South Korea is developing new basic standards of industrial classification for the domestic blockchain industry.

Three Korean ministries – the National Statistical Office, the Ministry of Information and Communication, the Ministry of Science and Technology – have been working since the end of last month to prepare the final draft of a new blockchain industry classification scheme, which will be announced at the end of July.

It’s reported that this scheme will serve as the basis for the development of policies, primarily aimed at “blockchain promoting into the regulatory framework” and covers areas, including the creation of blockchain-system and decentralized applications (DApps), as well as exchange and transactions with cryptocurrencies.

The project defines the exchange of cryptocurrencies as the exchange of cryptocurrency assets and blockchain services, which is an important redefinition that recognizes “crypto exchanges as regulated financial institutions”, in contrast to their previous classification as “communication service providers”.

BChain reports that this step is the “first occasion” when the Korean government recognized the developing sector as a legitimate industry.

The initiative covers 43 government ministries and 17 regional municipalities, enterprises and financial institutions, as well as consultations with more than 160 institutions to collect the first country statistical survey in this sector.

The government divided the sectoral classification into three sectors with ten divisions under the leadership of the Korea Standard Industrial Classification (KSIC). The departments include detailed considerations about the infrastructure associated with blockchain for applications (DApps), such as EOS, Ethereum and NEO, blockchain-based cloud computing services and cryptocurrency mining.

The survey also covers the integration of systemic chains into existing industries, including the financial sector, security, insurance, copyright management, supply chain management, medical services and software development.

Today’s news is crucial for the South Korean cryptosphere, because the recent hacking of crypto exchanges caused the need for answers from local regulators. However, the important good news has been forthcoming from the government throughout the spring, most notably the country’s plans to lift its notorious total ban on domestic ICOs (Initial Coin Offerings).

At the end of June, the Ministry of Science announced the creation of Blockchain Technology Development Strategy, and since May the country’s central bank has been exploring the idea of ​​using a detachment to implement its “cashless society” project by 2020.