South Korean crypto exchanges have been left in limbo by the government, which looks set to miss its target of allowing companies to buy Bitcoin and other tokens with their balance sheets.

That’s according to a report from the South Korean media outlet Sisa Journal, which wrote that, with just a few weeks left in the year, “government guidelines are yet to be released.”

“The industry expects the corporate market’s entry into crypto to have a seismic effect on the crypto industry landscape,” Sisa Journal financial investment analyst Kim Tae-young wrote.

“That makes the financial authorities’ guidelines crucial. Companies are just waiting for the starting pistol. But it just keeps getting delayed.”

Domestic exchanges say this is causing uncertainty. And businesses lament they cannot keep pace with their rivals in the US and Japan, both of whom now have scores of Bitcoin treasury firms.

Exchanges ‘preparing for a rush’

Kim says South Korean crypto exchanges are “desperately trying to secure market dominance,” as they prepare to cater for a rush of corporate clients.

At present, regulatory guidelines prevent all corporations from opening crypto wallets.

In February, the South Korean Financial Services Commission unveiled a roadmap that it said would eventually let companies start buying coins.

It began by allowing NGOs, government bodies, and universities to sell crypto. The FSC said it would follow up by letting ordinary businesses buy and sell coins. And a final step, it said, would eventually see banks given permission to open crypto wallets.

This led the country’s top crypto exchanges to hurriedly prepare corporate investment and custody services.

The market-leading exchange Upbit says it now has over 160 corporate clients. Its closest rival Bithumb has reportedly secured around 100 corporate clients.

But Kim argued that the “actual number” of clients was “likely much larger,” and includes “potential customers who have filed documents ahead of approval.”

Rules are unfair, says business owner

Park Ju-young, the CEO of a media production company in Seoul’s Gangnam District, told DL News that it was “unfair” for regulators to stand in firms’ way if they want to buy Bitcoin.

“Companies are free to buy Bitcoin in the US and Japan,” he lamented. “Why can’t they do the same here? It’s their money, so we should let them do as they choose.”

Kim explained the delay, saying that the unexpected presidential election in June and subsequent discussions on government reorganisation have sparked delays.

The Upbit exchange’s range of new services include Upbit Biz, a dedicated corporate center, as well as a range of dedicated cold wallets.

Its rival Bithumb, meanwhile, held an inaugural business summit this year, the domestic industry’s first conference for corporate crypto clients.

Coinone is working with its partner, the neobank Kakao Bank, on a corporate accounts platform. And Korbit has launched an exclusive service for businesses with its own partner, Shinhan Bank.

“Regulators have failed to release guidelines,” Kim wrote. “In fact, there has been no word from the authorities at all on this matter. Levels of anxiety are growing high in the industry.”

An unnamed crypto exchange official told the media outlet: “Exchanges have corporate sales teams ready to leap into action as soon as the market opens. But without clear guidelines from the financial authorities, the entire industry is mired in confusion.”

Tim Alper is a news correspondent at DL News. Got a tip? Email at tdalper@dlnews.com.