Blockchain Companies Oppose South Korean Regulations

South Korean blockchain companies are withdrawing their projects from the country as a result of problems with regulations regarding cryptocurrencies and blockchains.

Blockchain projects are moving abroad

Business Korea, a local news agency, has noted that more and more blockchain companies are moving their projects outside the country. It seems that they are looking for better financing methods; moreover, large international exchanges offer greater opportunities. According to the sources, the reason for the mass relocations of such projects is that South Korea has problems with the implementation of controversial cryptocurrency regulations.

Experts point out that domestic blockchain projects are flocking to foreign exchanges largely due to tougher domestic cryptocurrency exchange market conditions. Investors cannot make or withdraw deposits in the Korean currency at Korean exchanges. Excluding the nation’s four largest exchanges, some 200 smaller exchanges cannot open real-name virtual accounts. This is one reason cryptocurrency investors cannot benefit from investor protection.

International giants such as Chinese BW.com, Binance Labs and Bitholic certainly realize the needs of the Korean market, and that is why they are opening a special exchange dedicated to Korean customers. Binance Labs also directly sponsors Korean blockchain companies.

Korean law discourages blockchain projects

The cryptocurrency sector is constantly changing, as evidenced by changes in the cryptocurrency policy of various countries. This week, Japan, which openly implements all crypto-innovations, has added a new platform - Rakuten Wallet. Such operations affect other exchanges, including Korean ones - their low volume this year discourages investment. On the list of the 100 largest stock exchanges, only a few are under Seoul's jurisdiction.