Despite the Lee Jae-myung administration's stance to 'foster the domestic coin industry'… Korean exchanges discriminate against Korean founders

Korean coin exchanges show a clear trend of avoiding Korean founders

Out of 88 coins listed in the past year, not a single case involving a Korean founder

There's even advice: 'If you want to list on a Korean exchange, renounce your Korean nationality.'

Even after the new government was launched, Korean exchanges still favor 'foreign coins.'

Politicians call for improvements to the coin listing environment that results in 'discrimination against Koreans.'

Since the launch of the Lee Jae-myung administration, policy direction has shifted toward fostering the domestic virtual asset (cryptocurrency) industry, but Korean exchanges are still reluctant to list coins associated with Korean founders, resulting in continued 'reverse discrimination' against Korean entrepreneurs.

According to BloomingBit, a survey of major local won-supporting exchanges found that, although each had listed between dozens and over a hundred new virtual assets over the past year, coins involving Korean founders were rare.

For example, at Exchange A, one of Korea's leading exchanges, only 9 out of 128 listed coins included a Korean founder. At Exchange B, it was 8 out of 107, and Exchange C had just 1 out of 34.

Of particular note, Exchange D, which handles over 70% of Korea's total virtual asset trading volume, listed foreign founder-issued coins in all but one of 88 listings in the past year. The only exception among Korean founders was a coin issued by 'nexon', a major global gaming company, through the establishment of its subsidiary 'Nexpace' in the United Arab Emirates (UAE).

Even with ongoing legalization and systematization of the cryptocurrency industry following the launch of the Lee Jae-myung administration, industry insiders say Korean exchanges are persisting in a climate that especially disadvantages Korean founders.

The founder of overseas-based E Coin, which is listed on all major domestic exchanges, said, "When Korean founders ask me how I managed to get listed on a Korean exchange, I have nothing special to say. It wasn't that hard. The same goes for other founders around me. Korean exchange staff easily meet with us, have meals, and communicate well. But Korean founders hardly get any opportunities to connect with Korean exchange officials, who generally refuse to even meet with them."

The founder of F Coin, who holds Korean nationality but established a corporation overseas and operates a virtual asset business, stated, "The most common advice I've received from people in the local crypto foundation circles was 'If you want to list on a Korean exchange, change your nationality.' Or, at the very least, fill your entire team with so-called 'burgers' (foreigners)." F Coin followed this advice rigorously and made sure only foreigners were visible in the team, did not open any Korean-language community channels or content, and meticulously concealed their nationality. As a result, they succeeded in being listed on all major Korean exchanges.

The co-founder of G Coin, who also holds Korean nationality, noted, "Even a coin that lost over 90% of its market cap in just three hours and evaporated trillions of won only three months ago was able to be listed on a major Korean exchange right after the incident, illustrating just how much easier the hurdles are for foreigners. While 'foreign coins' get listed on major exchanges despite rug-pull controversies, unless you're a company of nexon's size, it's extremely rare for a Korean-founder coin to be listed. In fact, trying to get listed on a Korean exchange is as if you're required to give up your nationality."

This 'reverse discrimination' by Korean exchanges has resulted in many young Koreans establishing overseas corporations and hiring foreigners. According to National Tax Service statistics, as of 2023, the amount of digital assets held overseas and reported by high-net-worth individuals and corporations totaled ₩130.8 trillion. Since this figure doesn't count money funneled abroad by domestic investors purchasing coins from 'burger coin' founders, the actual outflow of local capital is presumed to be even greater.

In response, mounting voices from the political sphere are calling for an end to this discriminatory environment for Korean founders.

Min Byung-deok of the Democratic Party of Korea commented, "Negative perceptions and regulatory-only policies by financial authorities under the previous administration blocked market growth and led to the outflow of top technology and capital abroad. To ensure the success of Korean projects, we must rapidly create an ecosystem that protects and fosters the industry and accelerate the passage of the Digital Assets Act."

Lee Jun-seok of the Reform Party stated, "We also need to improve our coin listing environment. With predictable policies, Korean projects should be preferentially listed on domestic exchanges, and this should serve as a foundation for enhancing global competitiveness." He added, "Rather than focusing on providing undue advantages to domestic coins, the priority should be to create an environment in which foreign and domestic coins can compete fairly."

Kim Jae-seop of the People Power Party said, "Over 90% of coins listed on domestic exchanges are foreign. In the end, domestic developers must go overseas to get listed, while investors are only able to access foreign projects—a structural abnormality that has become entrenched. This is not just about exchange preferences but a structural outcome created by a six-year ban on coin offerings (ICO) and regulatory uncertainty. Now, we must move away from regulations focused solely on suppressing speculation and create an environment where development, listing, and investment can proceed legitimately at home."

Reporters: Hwang Doo-hyun, Lee Young-min at BloomingBit cow5361@bloomingbit.io