South Korean Government to Exclude Sale, Brokerage of Digital Assets from Venture Business

South Korean cabinet ministers have agreed to exclude digital assets trading companies from venture business classification, Business Korea reported September 27.  

Back in August, the country’s Ministry of Small and Medium-sized Enterprises (SMEs) and Startups (MSS) had already excluded cryptocurrency exchanges from legislation governing venture businesses, Cointelegraph reported.

During the recent cabinet meeting held under the Prime Minister Lee Nak-yeon presidency, the government revised the “Enforcement Decree of the Act on Special Measures for the Promotion of Venture Businesses” to exclude all sale and brokerage of digital assets based on blockchain technology from venture business classification.

The new amendment is a higher legislative step building off of the August decision. According to Business Korea, the goal of the act’s revision is “to strengthen the cooperation of related institutions” to protect citizens from the “illegal activities” related with the digital assets business.

Business Korea adds that the government stated in reference to its decision:

"Money laundering and hacking related to blockchain-based digital asset trading and brokerage business are occurring, we will set it as a business sector not [to be] included in the venture enterprise and form a sound industrial ecosystem."

At the same time, the Ministry of Science and Information Communications Technology (MSICT) had pledged support last week for the domestic blockchain industry in order to facilitate technological growth.