On June 17th 2020, multiple Korean blockchain companies were invited to an event to discuss the state of Korean Blockchain industry, effects of COVID-19 on the industry, implementation of the Special Act, and the future of Blockchain Industry in the second half of 2020.
A total of ten projects were invited to the event: Chainflix, Quiztok, Opus M, SymVerse, MovieBloc, Hiblocks, Monster Cube, BNH Korea, Realty Bank, and Blocko.
Chainflix’s CEO Jeong-seok Oh shared his opinion on the several discussion points of the event.
The State of Korean Blockchain industry in the first half of 2020?
Jeong-seok believes that blockchain technology has yet to develop to actually impact the people’s daily needs. Currently he believes that blockchain is currently focusing too much on vague financing possibilities. Such limitations are making blockchain industry less attractive to the public, government, and investors. However, Jeong-seok said, “Despite such situation, companies working to implement blockchain in the commercial industry receive continuous funding from investors.” While the general market cap has decreased for blockchain technology since the ICO craze in 2017, Jeong-seok believes that projects focusing on the essence of blockchain technology will draw attention from the market as an aftermath of COVID-19.
Implementation of The Special Act (Effective from March 2021)
Recently, the National Assembly of South Korea has passed “The Act on Reporting and Using Specified Financial Transactions Information”. The act classified cryptocurrencies as a “virtual asset” and exchanges as financial institutions. The act was passed to regulate the cryptocurrency industry and prevent money laundering and financial manipulation.
According to Jeong-seok, major cryptocurrency exchanges welcome this act. However, smaller exchanges and companies might have a negative impact as they will have to prepare for ISMS verification and financial scrutiny. He also added, “Companies working on blockchain projects will need to prepare accordingly until the new act is actually enforced.” Preparing companies to receive ISMS (Integrated Safety Management System) verification is a costly process. Thus, if the Special Act later expands to include blockchain projects, Jeong-Seok believes that many business might give up their projects due to the incapability to afford and comply to the government’s regulations.
Effects of COVID-19’s on the Blockchain industry
According to Jeong-seok, “COVID-19 is forcing a digital transformation in our daily lives. Many industries such as education, medical care, and retail are now seeking to provide their services.” While the digital transformation will make services more accessible, Jeong-seok also showed his concern for protecting personal information. He believes that blockchain technology is a definite choice to protect valuable information assets from malicious hacks. He said, “Blockchain technology provides transparency and fairness. As there are more implementations happening across various industries, COVID-19 provides an important opportunity for blockchain companies.” As there are more feasible solutions provided in the market, blockchain mass adoption will become a reality.
Forecast for Blockchain industry and vision for the second half of 2020
As aforementioned, due to COVID-19, there is an increasing demand for UNTACT services. During this period of time, online businesses experienced a spike in revenue, interest, and traffic. Jeong-seok believes that this is the perfect time to implement blockchain into different services for an improvement in service quality. Blockchain technology can simplify many procedural tasks, increase security, and provide transparency. He said, “If more blockchain projects focus on the true possibilities that the technology offers, the market’s perspective on blockchain will turn positive. We need projects to successfully set an example of blockchain implementation on the commercial industry.”
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