Large corporations in South Korea are reported to launch ICOs via cryptocurrency subsidiaries in Japan, Switzerland, Singapore, and Gibraltar to avoid the local ICO ban.
Give me some examples!
Parent companies of the two popular chat apps, Line’s Naver and Kakao Corp, announced that they have established crypto and blockchain subsidiaries in Japan. According to media reports, South Korean healthcare companies also increasingly launching their ICOs abroad include Zikto, My23 Healthcare, and Medibloc. Hyundai BS&C, an affiliate of South Korean Hyundai group, has also launched its ICO in Switzerland.
Why is it important?
Wide restriction of initial coin offerings in South Korea makes the businesses seek the opportunity abroad, driving away the money from the domestic market.
What can we learn from it
- In a globalized world, blocking businesses from entering the crypto space does not really work.
- And it seems like the regulators are getting it. The financial authorities are in talks with the country’s tax agency, justice ministry and other government offices about a plan to allow ICOs in Korea when “certain conditions are met”.