South Korean authorities recently started paying a lot of attention to crypto related companies and projects. Country’s regulators intend to introduce a classification system to blockchain related projects and crypto exchanges, local media Bchain reported today.
With this classification, which will have ten subcategories, South Korea will for the first time recognize crypto exchanges as an industry.
According to this new system, cryptocurrency exchanges will be considered as an "Encrypted Asset Brokerage", while blockchain developers as a “blockchain-based software development and supply business”.
Government authorities, the Ministry of Information and Communication, the National Statistical Office and the Ministry of Science and Technology inform that they gathered opinions from more than 160 associations in order to establish and adjust the classification.
The classification will take place until the end of July and right now the government is working on detailing the subcategorization of blockchain-based businesses such as decentralized application developers, cryptocurrency transactions and exchanges.
Note that before this undertaking there was no regulated classification. It is a big task for a country to establish and widely recognize the categories, which will allow crypto companies to fit in the legislation. The completion date is still vague and details coming from the government are unclear at the moment.
To give a general idea here are the categories to be implemented:
There will be three subcategories added to an already existing categoryofSoftware development and supply business
- Blockchain-based mobile game development and supply business
- Blockchain-based system development and supply business
- Blockchain-based application development and supply business
There will be three subcategories added to an already existing category of Computer Programming, System Integration and Management
- Blockchain-based Computer Programming Service Industry
- Blockchain-based Computer System Integration Advisory and Construction Service Industry
- Other IT and computer operation service industry related to blockchain technology
There will be three subcategories added to an already existing category of Information Service Industry
- Blockchain Technology-related Hosting Service Industry
- Encrypted asset sales and brokerage
- Other information service industry related to the blockchain technology
These classifications will have detailed explanations and it is expected to lay the foundations of legal coverage of all blockchain-related businesses operating in South Korea.
By Nadya Astam