Lack Of Regulation Is Driving South Korean Crypto Firms To Ruins

A new report from South Korea shows that the lack of regulation is causing problems for a lot of cryptocurrency and blockchain technology companies which are actually forced to fold soon. A closure announcement which was featured in the crypto news earlier this week from the wallet service BitBerry started everything.

As previously reported on our site, the BitBerry operator and the Dunamu subsidiary RootOne Soft said that the “poor cryptocurrency market” conditions and the “uncertainty about the future of the blockchain industry” were the main reasons for this closure.

The lack of regulation forced customers to withdraw their funds from BitBerry wallets until the end of February. As per Chosun, an unnamed “industry official close to BitBerry” pointed his finger of blame at the government and stated:

“The downturn in the blockchain market and the lack of government regulation have made the business outlook very difficult [for crypto companies].”

The same media outlet reported that the crypto exchange Bitkiny which closed last year also gave similar reasons for its decisions to close. The platform’s operator then claimed that the “restrictive” government banking regulations were “most of all to blame” for the closure.

Meanwhile, the lack of regulation concerns many. Officials from services such as Prixbit which is another South Korean cryptocurrency exchange that closed down in 2019 are loud now, saying:

“We had to close down the business because of the number of new exchanges that opened.”

The Chosun reports show that the lack of regulation is driving an array of small and medium sized exchanges to join forces. Many of them did not even go about obtaining business licenses before as the industry was totally unregulated. Unfortunately for them, they learned that regulation should be put to force the hard way and had to shut down their operations.

The government policies in early 2018 forced a lot of exchanges as well as bona fide rivals to stick themselves in a struggle for survival. The report which is viral in the coming altcoin news claims that the South Korean blockchain and cryptocurrency industry insiders are desperate for the government to approve forthcoming legislation that would create a legal framework for them to operate in.