The golden age of blockchain is passing as 90% of South Korea's domestic development workforce has left the country over the past seven years

A representative of a South Korean blockchain developer said, "As blockchain companies such as corporate accounts and initial coin disclosure (ICO) continue to

The domestic blockchain industry, which once boasted the world's best level, is now facing a crisis. Over the past seven years, 90% of the domestic development workforce has left the country. It is pointed out that the government's excessive regulations, which have not been able to create a way to generate cash flow for blockchain companies such as corporate accounts and initial coin disclosures (ICOs), are largely responsible for this.

A representative of a South Korean blockchain developer said on the 27th, "As blockchain companies such as corporate accounts and initial coin disclosure (ICO) continue to have no way to create money flows, manpower has been leaked to Singapore and Hong Kong."

It was in December 2017 that the domestic blockchain industry stopped. At the time, the government announced 'emergency measures related to virtual currency'. This is because the domestic virtual asset market overheated and the "Kimchi Premium" soared to 60%.

The government will strictly crack down on crimes related to virtual assets and investigate the exchange of transaction funds in violation of the Foreign Exchange Transaction Act. At the same time, it banned financial institutions from holding and investing in virtual assets and allowed banks to manage real-name accounts.

The problem is that the 'gold price separation', which was the basis set at the time, is still maintained seven years later. Separation of gold prices refers to the separation of financial capital and virtual assets. It is a concept that contrasts with 'financial separation', which means the separation of financial capital and industrial capital.

Although financial authorities have never directly admitted it, it is not easy for the blockchain industry to use financial services as well as connections with the financial industry.

Corporate accounts are typical. With the introduction of the Specific Financial Information Act (Special Privileges Act) in 2021, banks were in charge of issuing real-name accounts, but they have not yet been issued to corporations.

There is no prohibition on corporate real-name accounts in the Special Fund Act. Banks, which are wary of financial authorities, are just not issuing real-name accounts to corporations.

Corporate accounts are the breath of the blockchain industry. Due to the nature of the blockchain, consideration is often given as tokens, because it is difficult to cash in.

Currently, the industry resolves this through OTC. When an OTC company receives a token and gives cash, it pays an employee's salary through it. "OTC companies set very high fees because they know the reality of blockchain companies," said a representative of a blockchain company. "As the money that should be given as an employee's salary continues to fall into fees, it is often lost to foreign companies."

In the industry, some analysts say that the golden time of blockchain, which was considered a future growth engine, is passing.

According to the "Blockchain Industry Survey" released by the Ministry of Science and ICT, the growth rate of the blockchain industry, which reached 187.4% in 2019, fell sharply to 7.7% last year.

Even around the world, the regulations imposed on the blockchain industry by South Korea, which values innovation, are excessive.

Korea ranked sixth in the world with 60.9 points in the "2024 Global Innovation Index" released by the World Intellectual Property Organization (WIPO). The per capita gross domestic product (GDP) also amounts to $35,000.

Countries of similar weight classes are already reorganizing virtual asset systems and supporting the blockchain industry. Singapore, which is called the heaven of blockchain, or the United States, where Donald Trump, who declared the president of virtual assets, was elected, is representative. However, Korea still bans financial institutions from treating virtual assets like Iran and Indonesia.

Another problem that has emerged as the departure of blockchain developers accelerates is that domestic investors cannot receive good services.

Global coin exchanges such as Binance and OKX provide users with blockchain wallets or deposits. In the blockchain, the wallet acts as your identification card and a key to using NFTs and blockchain-based games. It is a basic means of enjoying advantages as a blockchain industry beyond simple coin investment.

The deposit service works by paying interest when you leave your own coin. It is suitable for investors who want long-term investment.

All of these various services are impossible in Korea. An official from a domestic coin exchange said, "Staking services alone are not easily released while being wary of the authorities," adding, "In the past, deposit services at other exchanges have been suspended by the authorities."

Another major adverse effect of the seven-year separation of gold prices is the collapse of the virtual asset research industry, which has provided appropriate investment information to domestic investors.

Recently, domestic research companies are even working as public relations agencies to survive. There is no demand in the domestic market, so we are only receiving requests for overseas virtual asset projects, because they have a high demand for publicity for token sales. It is