Starting this year, Korea may no longer be considered a “blockchain powerhouse.” In the past, Korea was one of the key markets that virtually every global blockchain project had to go through. It had a strong retail investor base, significant trading volume, and highly active communities. KBW was also considered almost a mandatory stop for overseas projects and builders looking to enter the Korean market. But the landscape is changing rapidly. 1. Policies and regulations surrounding the digital asset industry still tend to focus more on restricting the industry than fostering its growth. 2. Crypto taxation is scheduled to begin next year. 3. Domestic exchanges and companies face various restrictions when it comes to actively investing in the blockchain industry and pursuing new business opportunities. But no matter how much capital moves within the Korean market, the ecosystem cannot truly grow if that capital cannot flow back into domestic blockchain startups and projects. Capital needs to circulate: Exchanges → Companies → Investors → Startups → New businesses, services & jobs Under the current environment, however, building this kind of virtuous cycle is becoming increasingly difficult. We can already feel this change on the ground. In the past, overseas projects were willing to spend significant marketing budgets to enter the Korean market, and countless global builders would come to Korea during KBW. Today, fewer projects are willing to spend as much in Korea as they once did, and for some overseas builders, Korea is no longer a “must-visit market.” It is increasingly becoming a destination they can simply skip. Japan is a case worth thinking about. Japan was once one of the most important crypto markets in the world. However, following the Mt. Gox hack, strict regulations and heavy tax burdens continued to weigh on the industry. As a result, many companies and talented individuals began looking overseas, and Japan’s presence in the global Web3 industry gradually weakened. Interestingly, Japan is now changing direction. Japan is working to reform its regulatory and tax frameworks in an effort to attract Web3 companies and capital back into the country. The United States, on the other hand, is moving even faster. Just a few years ago, many crypto companies were considering leaving the U.S. because of regulatory uncertainty. Today, however, the U.S. is working to establish clearer regulatory frameworks and actively integrate stablecoins, tokenization, and digital assets into the traditional financial system, with the ambition of taking the lead in the global crypto industry. While the U.S. is pursuing its ambition to become the world’s “Crypto Capital,” Singapore, Hong Kong, and Dubai are also competing to attract companies, capital, and talent through clearer regulations and proactive policies. Countries around the world are no longer looking at crypto simply as something that needs to be regulated. What will happen if Korea continues to focus only on regulations and restrictions? > Capital has no borders. > Companies have no borders either. = developers and talent will move wherever better opportunities and environments exist. And once companies, capital, and talent leave, bringing them back is far more difficult than keeping them in the first place. Japan has already experienced this and is now trying to reverse course. While Korea risks following the path Japan once took, the United States and other countries are moving in the opposite direction. If Korea wants to remain a “blockchain powerhouse,” the question we should be asking is no longer: “How can we restrict this industry further?” But rather: “How can we regulate it safely while creating an environment where companies, capital, and talent still want to build, invest, and innovate in Korea?”