A growing number of South Korean blockchain startups are opting to list their cryptocurrencies on overseas exchanges, according to a recent report. As more foreign exchanges have opened their doors to the South Korean won money market, it has also helped to attract cryptocurrency projects, especially those related to blockchain technology.
Recently, the number of South Korean companies listing their early-stage blockchain projects on these foreign exchanges has been increasing according to industry insiders. Two such companies, Medibloc, and Temco, who already listed their projects on the major exchanges in South Korea, have now been looking to list them on overseas exchanges as well. This includes exchanges in both the U.S. and Singapore.
This is an interesting turn of events, as it has recently been reported by the publication Business Korea that nearly all cryptocurrency exchanges in the country are on the verge of bankruptcy. According to the report, 97% of local exchanges are facing the real prospect of bankruptcy because of low transaction volumes. They added that only five or six of the top South Korean exchanges are listed in the top 100 in the world.
“It is no exaggeration to say that 97 percent of domestic exchanges are in danger of going bankrupt due to their low volume of transactions,” the report concluded.
It may be this kind of concern that is forcing the startup companies to look across the globe to ensure their viability. It may also be due to the fact that the challenging cryptocurrency exchange market conditions in South Korea are not helping the situation. Investors report great challenges in withdrawing or depositing funds at exchanges and some of the smaller exchanges are unable to open real-name virtual accounts.
Adding to the problem has been the banking industry within South Korea. They have been making the requirements for renewing accounts for crypto exchanges far more difficult, as the country is adopting a new set of anti-money laundering laws.
BW.com, a China-based cryptocurrency exchange which provides one of the largest volumes of transactions across the globe, has recently been working to lure South Korean blockchain projects to China. This includes Ziktalk, Storichain, Payexpress and Sigma Chain. This is expected to be an important step for these firms to use to gain access into China and other markets throughout Southeast Asia.
Binance Labs is another looking to lure South Korean startups. They have done so by directly getting involved in the acceleration of these Korean blockchain projects.
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