- Crypto migration in Korea increased 2.3x in 2024 compared to 2023.
- Vague regulation in Korea is weakening its competitiveness in the crypto and Web3 space.
From being a niche industry limited to tech enthusiasts to becoming a trillion dollar industry with widespread adoption across the globe, the crypto industry witnessed massive growth over the years. Despite the growing adoption of cryptocurrencies, global countries have not yet formed clear regulatory policies for the industry.
South Korea is one of those countries with a lack of crypto regulation but it gained popularity as one of the largest crypto markets in the world. As per the latest research report by Tiger Research, the migration of talent, capital, and companies to the crypto industry is increasing in South Korea.
Most of the countries across the globe are witnessing crypto companies moving offshore due to stringent regulations. China, India, South Korea, and the UK are the major countries in this list, facing migration of crypto companies and investors to other countries.
The South Korean crypto market is growing at a faster pace, recording huge trading volumes, having around 15.6 million crypto investors in the country. However, the domestic centralized exchanges are moving to other countries because of vague regulations. As per the Financial Services Commission’s VASP Survey in 2024, more than 2.3x funds were transferred to non-local VASP wallets in 2024 compared to 2023.
Vague Crypto Regulation to Weaken Web3 Ecosystem in South Korea
In addition to crypto funds, Korean Web3 firms are also moving their headquarters to crypto-friendly countries. Several countries moving to Abu Dhabi and Dubai is alarming for South Korea, as the country is losing out on innovation and development of crypto.
While the Korean Web3 companies move to other countries, the crypto talent is also wasting no time in seeking better opportunities in other countries. Talent migration could severely weaken the Web3 industry in the country, making South Korea lag behind other countries with clear crypto regulations.
Even though South Korea developed a regulatory framework for cryptocurrencies, it lacks clear guidelines for sub sectors such as stablecoins, DeFi, Web3 gaming, etc. With friendly-crypto policies outlined in the recent crypto executive order signed by the President of the US, this disparity widens further, encouraging crypto companies and talent to migrate to the US.
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