Korean Companies' Success Leaked Overseas by Foreign Exchanges

Foreign cryptocurrency exchanges are cashing in on Korean companies' success without giving domestic operators a chance to participate. A recent seminar at the National Assembly highlighted this issue, with attendees questioning why only foreign exchanges profit from products based on Korean firms.

Binance was cited as an example, having listed perpetual futures products tied to Samsung Electronics, SK hynix, and Hyundai Motor last month. It also introduced 'KORUUSDT', a product based on 'KORU', a 3x leveraged ETF tracking the KOSPI.

Bybit and KuCoin have followed suit, launching similar products that trade around the clock on foreign platforms. The issue is that domestic exchanges are confined to spot trading, unable to handle tokenized assets or derivatives. As a result, fees, liquidity, and user data flow overseas, leaving domestic operators in the dark.

Competitiveness in the cryptocurrency industry now hinges on connecting various assets like stocks, bonds, and ETFs through blockchain to create new financial services. Korea must adapt its system to protect investors while allowing domestic operators to compete globally.