The number of South Korean digital currency projects going away the country to list their product on foreign exchanges is increasing, experts say.

South Korean news outlet Business Korea according on August. 19 that business experts have detected a surge in cryptocurrency and blockchain-focused comes seeking to list their early-stage product on overseas platforms.

Experts define reasons behind projects’ departure

Experts named many key reasons that native projects are leaving, as well as stricter domestic cryptocurrency exchange market conditions, whereby investors don't seem to be ready to make or withdraw deposits within the Korean won on Korean exchanges. One more reason named is low transaction volume.

According to specialists, regarding 200 smaller exchanges cannot open real-name virtual accounts, and 97 of native exchanges are at risk of going bankrupt because of low transaction volume.

New norms for cryptocurrency exchanges

In late July, Top Market Group reported that South Korean cryptocurrency exchanges Bithumb, Upbit, Coinone and Korbitought to go with new, stricter norms to successfully renew their banking partnerships following the FATF guidance released in June.

The new FATF guidance has invited criticism from privacy advocates in the business. One facet that received specific vitriol was the travel rule, which needs that virtual asset service providers collect and transfer customer info during transactions.

In August, the monetary Intelligence Unit of South Korea's monetary Services Commission revealed plans to bring cryptocurrency exchanges underneath its direct regulation. The South Korean government plans to introduce a crypto exchange licensing system, as suggested by the FATF. This may supposedly enhance the transparency of cryptocurrency transactions.

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