Korean Government Regulations on ICOs are Driving Businesses out of Korea

Korean Business Look to Japan and Singapore to Start ICOs

Korea is dealing with very few job opportunities in Korea and things have gotten worse with the ban on ICOs and strict Korean government regulations on cryptocurrency exchanges.  A lot of companies in South Korea as looking outside of Korea to start their business.  Cryptocurrencies and ICOs are very hot right now.  Therefore, many Koreans are looking to cash in while the iron is hot.  In addition, many are looking to countries like Singapore, Japan, and even countries in Europe like Switzerland to launch their ICOs.

Korea has a strong mobile/internet infrastructure.  They should be taking the lead when it comes to this new and fascinating world of blockchain and cryptocurrencies.  By banning and making strict regulations when it comes to digital currencies, Korea is starting to see a lot of tech companies leave Korea.  Therefore, the longer Korea takes in bringing ICOs back to Korea, the longer it will take for Korea to catch up with the rest of the world.

Will Korea be able to Recover?

Global investments in Korea has halted.  Many Korean investors that are eager to invest in crypto and blockchain companies need to look outside of Korea.  Even big corporations like Naver and Kakao have created blockchain subsidiaries in Japan recently.  By banning ICOs in Korea they have forced the hand of many Korean companies.  If they want to compete with the rest of the globe they have to establish these companies outside of Korea.  Korean government regulations have stopped the progress of Korean innovation.

The Korean government announced recently that they might allow ICOs in Korea when certain conditions are met.  But what are these conditions?  Nobody really knows.  Which means no one really knows how long this will take.  As more and more companies leave Korea, it could come to a point where even if ICOs return to Korea it will be too late.  The impact this could have on the Korean economy is huge.  Just imagine if a company is successful with their ICOs.  Do you think they will move their company back to Korea?  Will they be considered Korean companies?  It seems to be the countries that are benefiting the most are countries like Japan and Singapore that are embracing this new technology, not banning it.

John Yoon

John Yoon is the Editor in Chief at Startup Radar, Organizer for Startup Festival 2017, Head of Operations Korea at EOS Asia and the Global Marketing Director for Foresting.io. Email = john@startupradar.asia if you are interested in guest contributing and helping the Korean startup ecosystem. Wechat, Kakao, and Line user ID is jswy315

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