Korea Blockchain Week's sixth annual two-day flagship conference, Impact, which took place at the Shilla Hotel in central Seoul, attracted 263 different blockchain companies, attracting more than 6,000 participants eager to learn about the ups and downs. of the industry in a year dominated by the bear market. feeling.
Much of the 85 panel discussions focused on differences in the regulatory environments of the US (traditionally the largest crypto market and source of much of the industry's funding) and Asia, where several jurisdictions, including South Korea and Japan They are creating a more cryptocurrency-friendly environment for both developers and investors.
Caroline Pham, commissioner of the US regulator, the Commodity Futures Trading Commission (CFTC), said during her fireside chat at KBW that she sees a unified approach between policymakers, regulators and the private sector in Asia fostering innovation.
"I think it's funny that in the United States we're so used to some of the tremendous successes we've had in the tech sector that we take them for granted," Pham said. โIt's like everything (in Asia) is 10 years ahead of where we are in the United Statesโ
That's less related to skill or technical knowledge, he said, but "because there's an openness to technology and changing things."
American scrutiny
Another US regulator, the Securities and Exchange Commission (SEC), has intensified scrutiny of the cryptocurrency industry this year based on the claim that most cryptocurrencies, other than Bitcoin, are securities.
This logic has guided the agency's lawsuits against several digital asset companies, including the software developer. Ripple Labscryptocurrency exchange Coinbase Global and Paxos Trust, the issuer of the Binance USD (BUSD) stablecoin.
Most of the SEC lawsuits have yet to be resolved, as the companies involved dispute the claim of cryptocurrencies as securities. In July, the US court ruled that programmatic sales of Ripple's XRP token do not qualify as securities offerings. The SEC filed an appeal against the ruling the following month, which Ripple then asked the court denies it.
Such delays in establishing crypto rules may hamper the industry's growth, said former White House cybersecurity director Carole House. saying during a talk on the US and Asian regulatory landscapes. House warned that โtoo harshโ regulation of the cryptocurrency industry could stifle blockchain innovation in the US.
By contrast, Konstantin Richter, CEO and founder of California-based blockchain infrastructure company Blockdaemon, said regulatory scrutiny in the US is a long-term positive for the industry, despite current difficulties. .
โUltimately, all the legal problems we have here will lead to clarity, which is really all we want,โ Richter said in a video interview before the event.
Eastward movement
While opinions varied on US crypto regulation, most conference participants agreed that the Asia region is making important regulatory steps.
โI really think Asia-Pacific has been a powerful driver,โ House said, highlighting that Japan's regulatory framework has contributed to the global anti-money laundering standard in cryptocurrencies.
Sam Seo, representative director of the Klaytn Foundation, the public blockchain platform of Kakao, South Korea's leading mobile platform, said he foresees a wave of companies moving to Asia to take advantage of favorable conditions.
Gemini, the cryptocurrency exchange founded by the Winklevoss brothers, Announced in June that it is increasing its workforce in Singapore to operate as an expansion center in Asia-Pacific. Seo cited the new Klaytn camaraderie with Luxembourg-based asset tokenization platform Tokeny as another example.
โ[Tokeny has] They have been operating their business for quite some time, but they mainly focused on the American or European market. Now they are looking at the Asian market,โ Seo said, adding that he believes this is the โbeginning of a bigger trend.โ
Dominic Jang, head of business development at Singapore-based blockchain gaming platform Oasys, said the industry's move towards East Asia is particularly evident in the Web3 gaming sector.
"We are seeing more and more American companies making blockchain games seeking [the Asian market]โsaid Jang, adding that Asian audiences represent a growth market that is missing in the United States due to unfavorable regulations.
Regulatory clarity
Ryo Matsubara, a Japanese national and director of Oasys, said regulatory clarity plays an important role in attracting business to Asia, citing the regulatory situation in Japan as an example.
He said that after the high-profile attacks by mount gox and coin check crypto exchanges in 2014 and 2018 respectively, Japanese regulators established a strict set of criteria for cryptocurrencies.
"Under Japanese rules, cryptocurrencies are cryptocurrencies, not a security," Matusbara said. โSo do the [clear] โThe definition of cryptography is very important.โ
In the case of South Korea, the country's main financial regulator, the Financial Services Commission, announced a bill in July to amend securities regulations to accommodate security token offerings, or STOs.
While the bill has yet to receive approval from lawmakers, major financial institutions are already looking to expand into the digital asset industry. On August 30, South Korean financial leaders Woori Bank, Samsung Securities and SK Securities formed an alliance for cooperation in the development of security tokens.
Hong Kong also successfully launched its own cryptocurrency licensing regime earlier this year, positioning itself as a digital asset regulator sandbox for China.
In Southeast Asia, Singapore and Thailand increased cryptocurrency user protection regulations in July. Singapore now requires cryptocurrency firms to hold customer assets in third-party trusts, while Thai authorities introduced bans on cryptocurrency lending and betting services. Despite the tightening of restrictions, the new rules are considered necessary for the growth of the industry in both countries.
Step aside, America?
While SEC chief Gary Gensler's term ends in June 2026, he has been on the receiving end of calls for his resignation from US cryptocurrency advocates who view him as hostile to the industry. #FireGaryGensler was trends on X, formerly Twitter, on August 30 after a US district court ruled against the SEC's denial of Grayscale investments Proposed Bitcoin exchange-traded fund on the grounds that it was โarbitrary.โ
"His voice is the complete opposite of Web3 and crypto projects," Seo said, adding that Gensler's words have "a huge impact" on the industry and its perception among the public.
Therefore, Asia's ability to challenge the United States to become the center of the crypto world "depends on who will be the successor" to Gensler at the SEC, Seo said. If the current period of regulatory scrutiny drags on much longer, he added, it could push the country's talent to seek friendlier locations in Asia or Europe.
The Klaytn director concluded by saying that blockchain innovation is key to Asia's success. While the U.S. financial markets are strong, he said, Asia is much more populous and can take the reins as a global leader in Web3, if it finds the right ways to use blockchain technology.
