Boston Consulting Group (BCG), one of the Big Three global management consulting firms, says the South Korean crypto market will be worth around 1,000 trillion won (about US$835 billion) in 2026, while calling for a brand new regulatory framework.
- The number comes from BCG Korea’s Future of Asset 2022 report, which said South Korea’s crypto market will see an average annual growth of 20%.
- The report expects the crypto industry to create 40,000 new jobs and a production value of 5 trillion won (about US$4.1 billion) in 2026, as a result of the growth.
- South Korea still remains restrictive of the crypto market. Last year, it implemented do-or-die regulations to prevent financial crime in exchanges, and will apply the anti-money laundering travel rule to crypto businesses in March.
- The BCG report says the maturity of Korea’s virtual asset industry falls three to five years behind that of the world, particularly in terms of development in crypto exchanges, stablecoin issuance, derivatives, custody and payment services.
- It said that different opinions and levels of understanding hindered a clear outlook on the industry, despite an active discourse within the society.
- BCG says it is imperative for the government to set a new regulatory framework that is more focused on promoting the industry — while mentioning that the U.S., Japan, Singapore and Switzerland have constructed regulatory frameworks for crypto preemptively.