South Korea Doesn’t Consider Cryptocurrency Exchanges as Venture Businesses
The South Korean government has revealed it has removed cryptocurrency exchanges from the law that governs venture businesses, as reported in a press release.
The South Korean Ministry of Small and Medium Enterprises (SME) and Startups (MSS) issued a document that excludes cryptocurrency trading platforms from venture businesses and includes them rather near bars and nightclubs, firms which 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,” the press release elaborated.
The MSS is interested in blockchain
Instead, it looks like the MSS is eyeing blockchain technology: “[w]e will also foster blockchain technology and related companies at the government level.”
South Korea is still in the process of organizing its crypto environment. Today, cryptocurrency trading platforms based in South Korea are subject to tough legislation, being required to pay taxes and comply with other terms. In addition, these are strictly controlled by the South Korean government.
On the other hand, blockchain technology is seen as a revolutionary solution. This week, the country’s government announced it has allocated a budget of roughly $ 4.4 billion for exploring blockchain in 2019.