South Korea declared that it will not include cryptocurrency exchanges under the classification of venture enterprises. The government announced in a press release that it will exclude all cryptocurrency exchanges from the legislation of venture businesses according to a press release issued on Monday, August 13. The Ministry of Small and Medium Enterprises and Startups [MSS] said that it would consider crypto exchanges alongside bars and nightclubs as businesses that it would “not encourage as a venture enterprise.”
“The Small and Medium Venture Business Department [of the MSS] has no intention to regulate cryptocurrency trading and disclosures (ICOs), but as problems such as speculation emerge, cryptocurrency exchanges are not a target for the government to encourage as a venture enterprise,” read the press release. The MSS also added that “[w]e will also foster blockchain technology and related companies at the government level.”
The South Korean government has been increasingly exploring the blockchain industry and all businesses associated with it. The beginning of the year saw the preparation of a bill by the government which would have put a ban on cryptocurrency trading. However, the decision triggered a social unrest which pushed the government to set fire to its plans. Now the crypto industry of South Korea faces severe tax and banking constraints. The authorities are watching the industry like a hawk same as the Japanese government.
Although, the South Korean government is setting up strict regulations for cryptocurrency firms it announced yesterday that it will be looking to develop eight domestic industries including the blockchain industry. The government plans to increase the funding for projects like Blockchain, big data and artificial intelligence by 65%.
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