After the ban on ICO and crypto trading in China, local investors moved to the South Korean market, whose representatives call this trend dangerous for their own companies, Business Korea reports.
A lot of sites financed from China, including Zeniex, OK Coin and Gate. io, settled in South Korea. Zeniex, for example, receives investment from China's largest cybersecurity company Qihoo 360 and is connected with the crypto-currency media companies Bishije and Jinse Chaijing. The 18th largest exchange in the world Gate. io is also a Chinese site, which now operates from South Korea. Last month, OK Coin came to this market.
Trade in crypto-currencies and their popularity continue to be on the rise in South Korea, while in this country there are no strict rules for the registration of exchanges, which makes it an attractive jurisdiction for Chinese businesses looking for opportunities near home.
While the ban on holding the ICO in China remains in force, the National Assembly of South Korea officially proposed to lift similar restrictions on Tuesday.
Chinese virtual currency exchanges are not yet competitive, but they are key players in the global market. If the Korean virtual money market moves into the system and Chinese exchanges receive real name accounts in the future, the Chinese exchanges will become a big threat to Korean exchanges
South Korean Cryptocurrency Market Participant
While the influence of investors from China continues to grow, experts are wondering whether foreign companies will push out local exchanges from the market unless regulators take appropriate measures.