on the crypto
Unlisted equity trading platforms could act as support for South Korea's startup ecosystem.
The launch of two new platforms by February 2021
Following a successful government pilot project and a financial regulation sandbox, South Korea's financial sector is witnessing a wave of unlisted blockchain-based equity platforms, according to local news source Business Korea.
These platforms could offer a boost to South Korea's startup ecosystem. "Based on the government pilot project and a sandbox on financial regulation, the financial sector including KOSCOM (Korea Securities Computing Corporation) and other blockchain companies are launching new services one after another, ”says the report.
Until now, KOSCOM's unlisted blockchain-based stock market - called "Be My Unicorn" - was the only one to exist. Now, two other companies - Dunamu and PSX - will launch similar platforms in September 2020 and February 2021, respectively, according to sources close to the two companies.
PSX's unlisted stock trading platform was built in collaboration with Shinhan Financial Investment, while Dunamu's trading platform was developed with Samsung Securities. Reportedly, the creation of both platforms is monitored through the country's financial regulation sandbox.
A boost for the startup ecosystem
According to the report, the reason why these platforms could be particularly important for South Korea's startup ecosystem is because the increased security that these platforms offer "can lead to the promotion of startup investments."
For example, "Through the Be My Unicorn platform, investors will be able to trade unlisted securities from professional investors such as accelerators and venture capital-related securities," said KOSCOM.
This is because, reportedly, the KOSCOM platform - and the others, when they are launched - would reduce the burden of managing the lists of shareholders of small and medium-sized enterprises and venture startups.
The new platforms are also expected to help increase the commercial efficiency of the Investors. KOSCOM is also planning to launch "Initial", a blockchain-based mobile electronic authentication (DID) service, in the coming weeks. With Initial, it will be possible to use simple logins and electronic contracts together with the Be My Unicorn platform.
A list of startups in preview
On the PSX platform, which is now in the pilot phase, a series of famous unlisted startups can already be found in the list, including Market Curly, Musinsa, Vuno, Krafton (Bluehole), Ridi Books, Yanolja and Blocko. Meanwhile, PSX is receiving stocks of unlisted startups from angel investors, accelerators and stock option holders.
Shinhan Financial Investment is supporting PSX with the opening of user accounts and the trading system for stable PSX services. And what do you think of the advent of these new platforms? Let us know in the comments below.