South Korea Faces Challenges in Web3 Industry Due to Regulatory Uncertainty

According to PANews, a recent report by Tiger Research highlights that despite South Korea's leading position in global cryptocurrency trading volumes, the country's Web3 industry is facing significant challenges due to unclear regulations and a lack of specific guidance. This has resulted in an accelerated outflow of capital, talent, and enterprises. The report indicates that in 2024, the transfer of crypto assets from South Korea to overseas exchanges and DeFi platforms is expected to increase by 2.3 times compared to the previous year. This trend is primarily driven by disruptions in local exchange services and the allure of external investment opportunities. Notably, South Korean Web3 companies such as Nexpace, Klaytn, and Wemix have relocated their headquarters to countries with more favorable regulatory environments, like the United Arab Emirates. Additionally, the report points out that the outflow of talent is exacerbating the decline in South Korea's technological competitiveness within the Web3 ecosystem. In contrast, countries like the United States and the United Arab Emirates are attracting high-end tech talent through clear policies. To maintain competitiveness in the global Web3 industry transformation by 2025, South Korea needs to urgently push for regulatory reforms. These reforms should include allowing corporate accounts to engage in crypto transactions and establishing policies related to stablecoins and DeFi to build a sustainable innovation ecosystem.