According to Edward Hong, the chief platform officer (CPO) at the early-stage venture firm Hashed, South Korea’s decision to delay putting in place a comprehensive crypto regulatory framework seems to be more of a strategic move rather than hesitation. Hong insisted that the perceived delay helps to ensure that South Korea’s regulatory regime will be in sync with any internationally agreed framework.
Korea’s Position at the ‘Forefront of Global Technology Adoption’
Hong also told Bitcoin.com News that when South Korea’s crypto regulatory framework is in sync with those of its peers, this may make it possible for the Asian country to foster a “more standardized and interoperable landscape for crypto assets.” When asked about how South Korea has made itself one of the world’s leading cryptocurrency markets, the CPO suggested that this may have something to do with the country’s position “at the forefront of global technology adoption.”
Regarding the prospect of Korea becoming successful in the crypto space just as it has done with everything else, Hong said this may be possible if both industry leaders and the government increase efforts to educate people.
Meanwhile, Brian Kang, a co-founder at Factblock, which is organizing the Korea Blockchain Week (KBW) along with Hashed, told Bitcoin.com News that this year’s event will prioritize blockchain and Web3 education. Kang added that the event, which is set to be held in the first week of September, will highlight to the world the “technology’s transformative potential in addressing challenges across various industries”.
Below are both Edward Hong and Brian Kang’s respective answers to questions sent to them via Telegram.
Bitcoin.com News (BCN): According to a recent report by CCData, Korean crypto exchange Upbit saw its trading volumes jump by 42% jump in July which makes it one of the world’s largest crypto exchanges. Moreover, the Korean won (KRW) is now the second-most traded fiat currency against bitcoin (BTC) after the U.S. dollar, according to Coinhills. Can you explain to our readers how Korea came to have such a high awareness of and interest in crypto?
Edward Hong (EH): Korea is positioned at the forefront of global technology adoption. Since the turn of the millennium, coinciding with the rapid expansion of internet usage, the Web 2.0 industry has witnessed an unparalleled surge in growth in the country. This eventually led Koreans to promptly adopt innovative technologies such as blockchain and cryptocurrency. This progress has provided the foundational context for Korea’s rise to one of the world’s most active crypto markets
BCN: The Korean government appears to have prioritized investor protection with the Virtual Asset User Protection Act. Could this new act stifle innovation in the crypto space? Also, do you think regulators have tried to balance investor protection and the need for crypto innovation?
EH: Indeed, the lack of global consensus on a unified regulatory framework for cryptoassets is a significant factor contributing to South Korea’s cautious approach in delaying comprehensive industry-wide regulations. While adopting anti-money laundering (AML) requirements based on the Financial Action Task Force (FATF) recommendations is a crucial step, the approach acknowledges the challenge of achieving universally harmonized legislation in an industry that transcends borders.
South Korea’s decision to delay a comprehensive regulatory framework appears strategic rather than hesitant. It acknowledges the complexity of achieving international consistency in provisions and definitions. By awaiting greater global alignment, South Korea aims to ensure that its regulatory framework effectively fits within the broader international context, promoting a more standardized and interoperable landscape for crypto assets.
There is much anticipation surrounding South Korea’s evolving approach to crypto regulation, reflecting a forward-looking stance and an environment poised for positive developments in the crypto industry.
BCN: Factblock has been organizing Korea Blockchain Week (KBW), one of the biggest crypto events in Asia, with the co-host Hashed for years. Can you tell our readers how this started and your journey so far?
Brian Kang (BK): In 2017, Factblock, a prominent Web3 community builder in South Korea, first introduced KBW to Hashed. Hashed embraced KBW’s vision of establishing Korea as a central hub for the blockchain and Web3 industries. This shared vision prompted Factblock and Hashed to jointly decide to co-host KBW and collaborate to realize these aspirations. KBW’s primary emphasis lies in education about blockchain and Web3, as well as highlighting the technology’s transformative potential in addressing challenges across various industries.
As the blockchain/Web3 ecosystem continues to witness the emergence of numerous projects, it becomes evident that additional efforts are necessary to enhance the familiarity and accessibility of these projects to the broader public — this is a goal that KBW aims to accomplish for the industry. Aligned with this understanding, KBW maintains its commitment to fostering an environment that accelerates the widespread adoption of Web3 technologies.
BCN: This year’s KBW is scheduled to start in the first week of September. Besides the usual panel discussions or side events, how can international builders coming to Korea get maximum exposure to the local crypto ecosystem?
BK: KBW 2023 has an extensive lineup of events planned, featuring not only the main event ‘IMPACT’ but also over 100 side events during the entire week including hackathons and other events tailored for builders and founders. KBW also has curated a series of networking events where participants from across the globe will have the privilege of engaging, forging valuable relationships, and identifying business opportunities.
BCN: Korea has established itself as a global leader in electronics, automobiles, shipbuilding, and many other countries. In your opinion, what are some of the biggest challenges that impede the country’s attempt to replicate the same level of success in the crypto industry?
EH: The foremost challenge revolves around the regulations and policies governing the blockchain and Web3 industries. The absence of comprehensive guidelines necessary for industry growth has led to a sense of ambiguity for builders venturing into the Web3 space. However, it’s worth noting that this challenge is not unique to Korea; similar circumstances seem to prevail in other nations as well. Furthermore, the critical requirement is the easy accessibility and comprehensive education of blockchain technology and Web3.
Many individuals still find the technology challenging to understand and grasp. To address this, increased efforts from both industry leaders and the government to educate people are imperative. By doing so, the Web3 industry could experience unprecedented growth opportunities in the future.
BCN: Amid the so-called Operation Choke Point 2.0 in the US, many builders and developers are looking at countries that have a combination of regulatory clarity and a thriving ecosystem. In your view, why should they consider setting up a base in Korea particularly when Hong Kong, Japan, and Singapore are also going the extra mile to attract companies and talent?
EH: As mentioned in the previous question, it is evident that Korea is at the forefront of adopting new technologies. Notably, Korea has surpassed Japan, Hong Kong, and Singapore in generating a greater number of unicorns according to Statista in 2022. This distinction can be attributed to Korea’s robust technological infrastructure and notably high internet penetration rate. These factors have cultivated an abundant talent pool of skilled engineers who have already created numerous blockchain-based projects in the country.
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