Reports show that South Korea is now undergoing a cryptocurrency policy transformation. The people in charge are in the process of tearing down the stone wall built around the regulations related to cryptocurrencies. The plan is to align these rules with that of the G20 so that transactions become simpler and hassle-free.
The South Korean government has set up a panel to look into cryptocurrency exchanges and their dealings. This comes after there were reports of multiple hacks and frauds in the cryptocurrency industry. The Bank of Korea has even released a report on using cryptocurrency as a means of payment.
What do we know about the new cryptocurrency classification system?
The classification system for matters related to cryptocurrency and blockchain related activities was formulated by Statistics Korea, a division of the Ministry of Strategy and Finance.
Statistics Korea has been accumulating comments by beta testers of the ‘news classification system’ and they will be assessed by the ‘National Statistical Commission Policy subcommittee’. The results of the review will be published on 25th July. The publication states:
“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.”
A South Korean publication has reported that:
“Blockchain platforms such as EOS and Ethereum also have unique industry classification criteria.”
The recent discrepancies in the cryptocurrency industry have forced the South Korean government to team up with the Korea Communications department. This major function of this body is to look into major cryptocurrency exchanges and their practices. The announcement regarding the investigations states that:
“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.”
The report by the bank examines the far-reaching consequences of the economic and legal nature of crypto assets, as well as key the issues related to the central bank and its functions.
The report also says:
“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.”