Crypto Regulation Halts Growth of S Korean Web3 Unicorns

Introduction

South Korea is home to several Web3 unicorns that were once considered to be the future of the country's tech industry. However, the growth of these start-ups has been hindered by the government's strict regulations on cryptocurrency. This article discusses the impact of crypto regulation on the growth of South Korean Web3 unicorns.

The Story of dApp

dApp is a South Korean start-up that was founded in 2017. It developed a decentralized mobile app that allows users to buy and sell cryptocurrency directly from their phones. The company quickly gained popularity and became a Web3 unicorn in just two years.

However, in September 2019, the South Korean regulator, the Financial Services Commission, issued a ban on all initial coin offerings (ICOs). This ban was a major blow to dApp, as it had planned to launch its own ICO to raise funds for further development.

Since then, dApp has struggled to grow. The company's CEO, Lee Jang-hwan, said in an interview, "The ICO ban has severely limited our ability to raise funds, which has in turn hindered our growth."

The Impact of Crypto Regulation on Web3 Unicorns

dApp is not alone in its struggles. Many other South Korean Web3 unicorns have been affected by the country's strict regulations on cryptocurrency. For example:

• Icon (ICX) - Icon is a blockchain platform that connects various independent networks. In 2018, the company raised $42 million in an ICO. However, since the ICO ban, Icon has struggled to raise funds and has seen a decline in its market value.
• Kakao's GroundX - GroundX is a blockchain subsidiary of South Korean tech giant, Kakao. The company's flagship project, Klaytn, is a blockchain-based platform that aims to provide easy access to blockchain technology for businesses. However, Klaytn has faced regulatory hurdles and has been forced to delay its launch.
• Hashed - Hashed is a blockchain-focused venture capital firm that has invested in several South Korean Web3 start-ups. The company's founder, Simon Kim, has warned that the strict regulations in South Korea are causing the country to fall behind in the global blockchain race.

Conclusion

1. The strict regulations on cryptocurrency in South Korea have hindered the growth of Web3 start-ups in the country.
2. These regulations have limited the ability of these companies to raise funds, which has in turn hindered their growth.
3. To stay competitive in the global blockchain race, South Korea needs to revisit its crypto regulations and provide a more supportive environment for Web3 start-ups.