{"id":4556,"date":"2023-05-05T09:20:31","date_gmt":"2023-05-05T13:20:31","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/crypto-regulation-halts-growth-of-s-korean-web3-unicorns-warns-professor\/"},"modified":"2023-05-05T09:20:32","modified_gmt":"2023-05-05T13:20:32","slug":"crypto-regulation-halts-growth-of-s-korean-web3-unicorns-warns-professor","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=4556","title":{"rendered":"Crypto Regulation Halts Growth of S Korean Web3 Unicorns, Warns Professor"},"content":{"rendered":"
\n

A leading South Korean professor says that restrictive crypto laws are stopping Web3 unicorns from growing in the nation.<\/p>\n

The expert also claimed that banks and other financial market players should be allowed to move more freely in the crypto market.<\/p>\n

According to EDaily, the Web3 comments came from the Hoseo University Professor Kim Hyeong-joong, who also serves as the President of the Fintech Society.<\/p>\n

Speaking at a Web 3.0 policy seminar this week, Kim said:<\/p>\n

\n

\u201cSome 5% of the world\u2019s unicorn companies are operating in the Web3 sector. But there are no South Korean companies among that number.\u201d<\/p>\n<\/blockquote>\n

The professor claimed:<\/p>\n

\n

\u201cThis is because the government banned financial institutions from holding cryptoassets while calming the [crypto] craze of 2017.\u201d<\/p>\n<\/blockquote>\n

This, he claimed, had led to a lack of venture capital investment in domestic Web3 companies.<\/p>\n

Domestic Web3 firms, said Kim, have been left \u201cimpoverished.\u201d He blamed Seoul for \u201cblocking growth\u201d of all things crypto-related.<\/p>\n

The professor pointed to CB Insights research published in April, which made note of the fact that there are currently 1,206 unicorn companies in the world.<\/p>\n

Of this number, 63, or 5%, were identified as Web3 companies.<\/p>\n

But no South Korean companies made this list, Kim stated.<\/p>\n

He said:<\/p>\n

\n

\u201cWhile many Web3 unicorns are appearing around the world, South Korea is missing a precious opportunity.\u201d<\/p>\n<\/blockquote>\n

S Korean Banks Also Need Access to Crypto Markets, Professor Claims<\/h2>\n

Meanwhile, per ZDNet Korea, Kim also took aim at the government\u2019s stance on crypto buying.<\/p>\n

He noted that the Bank for International Settlements (BIS)-affiliated Basel Board of Banking Standards has unveiled a regulatory bill that would allow banks to hold up to 2% of their total assets in crypto.<\/p>\n

<\/oembed><\/figure>\n

But as of 2017, South Korean financial companies were banned from holding or investing in cryptoassets.<\/p>\n

Kim said,<\/p>\n

\n

\u201cIf South Korean financial institutions do not learn to master newly emerging [financial] technologies, the future of the [domestic] financial industry will inevitably be bleak.\u201d<\/p>\n<\/blockquote>\n

South Korean lawmakers are hopeful of adopting a new crypto-related law that would oblige all crypto operators to keep their clients\u2019 tokens in cold wallets.<\/p>\n

The draft law also seeks to create a clear divide between central bank-issued coins and decentralized tokens.<\/p>\n<\/p><\/div>\n