South Korea will soon announce a regulatory framework that protects and encourages blockchain development, according to a local source.
According to popular news site thebchain.co.kr, officials will introduce an industry classification system that breaks blockchain projects down into ten categories. The move is set to recognize cryptocurrencies as legitimate, paving the way for future development.
The move has not been rushed – government officials, the National Statistical Office, the Ministry of Science and Technology, and the Ministry of Information and Communication have all collaborated to produce the bill. Sources reveal that it is now being vetted by 43 government ministries, 17 regional municipalities as well as corporations and financial institutions, with the total number of involved institutions totaling 160.
The bill is expected to be publicly announced at the end of July, and would mark a significant turning point for the peninsular nation. South Korea sent cryptocurrency markets spinning when it clamped down on ICOs last year and sought to ban exchanges.
The new bill signals a turnaround on official policy, with authorities seeking to fairly regulate and support this emergent technology. If past experiences are anything to go by, this announcement could have a significant impact upon the global market.
South Korea has moved to join a small sector of countries paving the way for blockchain-based development. Earlier this year Malta was a first-mover, issuing a new policy that provides a fair structure for blockchain developers. Switzerland and Sweden have also changed policies to provide a welcoming environment.
These countries are hoping their clear positive regulator stance will attract blockchain developers to their shores. With ICO’s raking in billions, countries which are successful here will likely see a significant boost to their economies.
Although the announcement has not yet been officially made, South Korea’s new policy represents a clear turnaround for the country’s approach to cryptocurrency – many investors will hope the announcement will signal a turnaround for cryptomarkets too.