South Korean financial officials have finalized the draft categorizing cryptocurrency exchanges in a new industry called “Crypto assets Exchange and Brokerage”. The new draft also states that Blockchains such as Ethereum will be classified as “Blockchain based software supply and development business”.
The South Korean government will release more details in the coming month. A total of 10 types of classification categories has been announced for the cryptocurrency industry.
Exchanges operating out of South Korea will now be regulated as banks, enforcing strict strong KYC (know your customer) and AML (anti-money laundering policy).
Current South Korean exchanges such as BitThumb, would now require to completely overhaul their business processes to comply with the new law. Moreover, new exchanges will have to obtain a necessary approval from the countries cybersecurity and financial authority.
Back in January, South Korean officials considered banning cryptocurrency. But due to a huge backlash from the local community, President Moon Jae-in announced that no such ban would take place.
South Korea, also appears to be easing its stance on Initial Coin Offering (ICOs).
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