South Korean experts call for clear standards for crypto-project repatriation and licensing
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AT A GLANCE
Some South Korean domestic crypto projects have moved their issuing entities or operations overseas, and experts are calling for clear licensing and repatriation standards.
Article
[South Korean domestic crypto projects continue to move overseas due to regulatory gaps following the IC0 ban; experts call for the Framework Act to clarify repatriation standards]
The Digital Asset eXchange Alliance (DAXA) released the 2026 Digital Asset Policy Reference Collection. Cho Jae-woo, a professor at Hansung University, noted that since the 2017 IC0 ban, South Korean domestic crypto projects have continued to relocate their issuing entities and business bases overseas due to institutional gaps. Klaytn's token issuance is handled by a Singaporean legal entity, while WEMIX under Wemade likewise uses a Singaporean legal entity as its issuing entity. Subsequently, Metabora moved to Dubai and NeoFin relocated its foundation to Abu Dhabi, further intensifying the trend of industry outflows. Experts identified regulatory disparities between domestic and foreign issuers and difficulties opening corporate bank accounts as key obstacles. Emphasizing that "what South Korea needs is not looser regulation, but clearer rules," they called for the Digital Asset Framework Act to specify licensing standards for businesses such as issuance, custody, and validation, and to establish dedicated procedures for repatriating core overseas functions to South Korea.
Key points
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The Digital Asset eXchange Alliance (DAXA) released the 2026 Digital Asset Policy Reference Collection.
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Cho Jae-woo, a professor at Seoul National University, noted that since the 2017 IC0 ban, South Korean domestic crypto projects have continued to move their issuing entities and business bases overseas.
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Klaytn's token issuance is handled by a Singaporean legal entity, while WEMIX under Wemade likewise uses a Singaporean legal entity as its issuing entity.
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Metabora moved to Dubai, while NeoFin relocated its foundation to Abu Dhabi.
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Experts identified regulatory disparities between domestic and foreign issuers and difficulties opening corporate bank accounts as key obstacles, and called for the Digital Asset Framework Act to clarify licensing standards for businesses such as issuance, custody, and validation, as well as procedures for repatriating core overseas functions.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Some South Korean crypto projects establish their issuing entities, foundations, or business bases overseas. Experts believe the key issue is not simply easing regulation, but clearly setting out the requirements for each type of business and how overseas functions can be moved back to South Korea.
Why it matters to readers
If relevant licensing and repatriation procedures are clarified, South Korean domestic crypto projects will be better able to determine how to conduct issuance, custody, validation, and other businesses domestically; the materials state that unclear rules and difficulties opening corporate accounts are the main obstacles.
Beginners can watch whether South Korea introduces a clear Digital Asset Framework Act and whether a project's issuing entity is located in South Korea or overseas; this information helps clarify which jurisdiction's rules govern the project.
Risks and unknowns
The materials do not provide the original text of the DAXA《2026 Digital Asset Policy Reference Collection, so its complete wording cannot be verified.
The materials do not provide responses from the South Korean government or the relevant projects.
The article uses the term "IC0", and the available materials alone cannot confirm whether it refers to another term.
It is not stated whether the experts' recommendations will be incorporated into the Digital Asset Framework Act, or what the specific implementation timeline and standards will be.
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Related concepts
Issuing entity
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