Tiger Research's latest report highlights the challenges facing South Korea's Web3 industry due to unclear regulations and lack of guidance, leading to an outflow of capital, talent, and enterprises. In 2024, the transfer of funds from South Korean crypto assets to overseas exchanges and DeFi platforms is expected to increase by 2.3 times year-on-year. This trend is driven by the interruption of local exchange services and attractive external investment opportunities. Companies like Nexpace, Klaytn, and Wemix are relocating to countries with favorable regulations, such as the UAE. The report emphasizes the need for South Korea to implement regulatory reforms, enable corporate crypto transactions, and establish stablecoin and DeFi policies to maintain competitiveness in the global Web3 industry by 2025.

PANews reported on January 24 that the latest report released by Tiger Research pointed out that although South Korea's cryptocurrency trading volume leads the world, the development of the country's Web3 industry is hindered by unclear regulation and lack of specific guidance, and capital, talent and enterprises are accelerating the outflow. The report mentioned that in 2024, the transfer of funds from South Korean crypto assets to overseas exchanges and DeFi platforms will increase by 2.3 times year-on-year, mainly affected by the interruption of local exchange services and the attraction of external investment opportunities. In addition, South Korean Web3 companies such as Nexpace, Klaytn and Wemix have moved their headquarters to regulatory-friendly countries such as the UAE.
 The report also pointed out that the outflow of talent has exacerbated the decline in the technological competitiveness of South Korea's Web3 ecosystem, while countries such as the United States and the UAE have attracted high-end technical talents through clear policies. If South Korea wants to remain competitive in the global Web3 industry transformation in 2025, it needs to urgently promote regulatory reforms, allow corporate accounts to conduct crypto transactions, and formulate stablecoin and DeFi-related policies to build a sustainable innovation ecosystem.

South Korea's Web3 Industry Faces Challenges Amid Regulatory Uncertainty