Reported by the Business Korea on August 19, the professionals in the crypto field have come across a sharp incline in projects in the crypto and blockchain sector, trying to list their products, which are still in the first stages of development, on foreign platforms.
Experts have come up with numerous reasons to explain the matter, including strict laws employed in the crypto scene in South Korea, where investors are not equipped with the ability to conduct any crypto-related transactions in Korean won on Korean exchanges. Reduced volume in trading is the second underlying factor.
The experts revealed that, approximately 200 small-scale exchanges are unable to set up online real-name accounts, and almost all (97%) of domestic exchange firms are facing the risk of bankruptcy due to low transaction volume.
Previously, in July 2019, several major crypto firms in South Korea, including Bithumb, Upbit, Coinone and Korbit are required to operate in compliance with new, stricter norms, in order to gain success in renewing their banking partnerships, after the updated guidance was made public in June.