South Korea has taken another step towards the legitimization of cryptocurrency with the announcement of a new regulatory initiative that will see blockchain platforms and businesses governed by a new classification system. The new system officially recognizes cryptocurrency exchanges as legal entities, marking the first time the South Korean government has acknowledged exchanges as an industry.
As reported by South Korean crypto news platform, The BChain, the new classification system will consider crypto exchanges as “asset exchange and brokerage,” while Blockchain platforms and networks such as Ethereum will be classified as “Blockchain-based software supply and development businesses.”
The new classification system developed as a joint initiative between the South Korean National Statistical Office, the Ministry of Science and Technology and the Ministry of Information and Communication, will consist of a series of main classification areas, with subdivisions within each classification allowing for significant nuance in the labeling of blockchain enterprises and platforms.
According to a government source quoted by BChain, a full outline of the classification will be released later this month. Some of the classification subdivisions have been released by South Korean state officials, such as categories that govern the development and distribution of blockchain-based mobile game software, or specific subcategories for blockchain-based cloud hosting services, such as Amazon Web Services and Microsoft Azure.