Korean blockchain companies are facing potential collapse as legislation of the Digital Asset Basic Act, which includes stablecoin regulations, continues to be delayed.
According to financial industry sources on Wednesday, BPMG, which is working with internet bank K Bank and Thailand's Kasikornbank to build stablecoin payment and remittance infrastructure, has been unable to launch actual business operations despite developing the relevant technology due to legislative delays. The company initially deployed approximately 20 developers based on the assumption that legislation would pass in the first half of the year, but is currently generating no revenue while incurring only personnel costs. Cost burdens have increased 20-30% compared to before.
One blockchain company that had secured investments worth tens of billions of won from a major conglomerate is now discussing liquidation procedures amid financial difficulties. Companies including Neowiz and cryptocurrency wallet firms are also scaling back their businesses. Market participants have expressed frustrated reactions, saying "if the bill is pushed to next year, it's basically telling everyone except Upbit and Bithumb to die." Shin Chang-sun, Vice President of Open Asset, warned that "there is a risk of losing capital, liquidity, and standard-setting leadership to overseas players."