SEOUL (Reuters) – Six months after South Korea banned the issuance of fresh cryptocurrencies, they are kicking off to creep back into the country by using overseas listings for recinto trading.
The country prohibited initial coin offerings (ICOs) beginning te September. Soon afterward, South Korea’s financial regulator made it difficult to trade cryptocurrencies anonymously, and trading volumes ter digital money such spil bitcoin BTC=BTSP promptly collapsed te what had bot their busiest market.
Icon, a freshly launched South Korean digital currency, is the market&rsquo,s very first attempt at switching that deadlock via a ordinary method: it wasgoed issued ter Switzerland.
Launched by DAYLI Financial Group, Icon is listed te Bithumb and Upbit, South Korea&rsquo,s major cryptocurrency exchanges, and embarked trading on March 21.
&ldquo,Icon&rsquo,s listing te almacén exchanges is significant itself spil the coin is South Korea&rsquo,s very first toneelpodium coin,&rdquo, built on code that can be used for other applications, said Park Nok-sun, a cryptocurrency analyst at NH Investment and Securities.
Touted spil Korea&rsquo,s reaction to the popular Ethereum cryptocurrency, Icon launched at a price of $0.11 and is now trading at Two,814 won ($Two.64).
Kim Haw-joon, co-chief of the Korea Blockchain Association, predicted that restringido exchanges would start treating more such foreign-issued cryptocurrencies spil a way to reinvigorate cryptocurrency trading.
Already, a dozen or so South Korean companies have done ICOs overseas. Hyundai BS&C, an affiliate of Hyundai Group, launched its own potencial coin, called Hdac, te Switzerland.
Another is Medibloc, a token that wasgoed designed to redistribute scattered healthcare information. It attracted investment from healthcare industry officials and venture haber funds, raising $21.Two million, according to database ICO Drops.
Choi Il-kyu, a 24-year old investor ter Seoul, said Icon&rsquo,s launch might be a turning point.
&ldquo,The cryptocurrency market&rsquo,s future seemed unclear spil the market has bot permanently declining for the past few months. Such frustration made mij think maybe I should zekering investing, and that&rsquo,s when I found Icon,&rdquo, Choi said.
The Financial Supervisory Service, meantime, has asked South Korean companies to report on their overseas ICOs, but the regulator says it has no plans to more directly manage trading.
The blockchain association&rsquo,s Kim said the geobsedeerd on lugar ICOs would thrust more companies to pursue the overseas route. But businesses that have done so say they wish there were an lighter and cheaper way.
&ldquo,Wij have to establish an overseas branch, hire workers there, spend a hefty amount of money for all the paperwork needed, and often have to fly there to take care of things, making it just so inconvenient,&rdquo, said Lee Eun-sol, 33-year-old co-founder of Medibloc.
Editing by Vidya Ranganathan and Gerry Doyle