According to a South Korean media source, the nation plans on legalizing cryptocurrency exchanges by branding them as ‘legal entities’.

With this move, the government will effectively lay a solid foundation to legitimize crypto technology. The media report also mentions that South Korean authorities are looking to implement a new classification system for all blockchain-related industries and as such, all cryptocurrency and blockchain platforms like Bitcoin, Litecoin will henceforth be referred to as “Blockchain-based software supply and development businesses.”

A More Detailed Look At the Issue

While further details regarding the matter are expected to be released sometime later this month, there had continually been reports circulating that a move like this was on the cards. Earlier this year, the Korean Financial Intelligence Unit had made it clear that it would soon be regulating cryptocurrency exchanges so as to enforce rules like KYC and AML more strongly.

Final thoughts

While South Korea has effectively banned all initial coin offerings (ICOs), it appears that in the near future a repeal in this regard can also be expected. According to established media sources, the Korean legislative assembly is working to introduce new rules that will allow for ICOs to be issued— albeit with certain protection guarantees intact.

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