“If you see someone without a smile — give them one of yours.” — Proverb

In recent years, South Korea has become a world leader in blockchain and cryptocurrency. As of early 2018, the Korean won was second only to the US dollar in fiat-based cryptocurrency trading, accounting for more than 10% of BTC trades in the second half of 2017. It’s not just trade volume, either: the South Korean government has chosen to recognize crypto exchanges as an industry called “Cryptocurrency Exchange and Brokerage.” This level of thoughtful regulation will enable trading at scale with support from authorities and establish Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines that will help legitimize the sector at an institutional level.

Alan speaking at the Japan Blockchain Conference in Tokyo

It’s this passion for blockchain innovation that brings Alan S. Knitowski, CEO of Phunware, and the rest of the PhunCoin team on a tour through Southeast Asia, including Singapore, Tokyo and Seoul. Their trip has seen stops at conferences and events such as CoinAgenda Asia, Singapore Blockchain for Finance APAC, Blockchain Open Forum and the Japan Blockchain Conference.

Mobile platforms with their unique capabilities for portability, personal encryption, and data are a perfect fit for transactional cryptocurrencies like PhunCoin. In 2016, mobile technologies and services generated 5.2% of Asia-Pacific GDP and Southeast Asia’s mobile market spend of USD $8.8B as of 2017 accounted for more than 52% of mobile payments worldwide, making this region a crucial one to address mobile-first consumers. With such a large consumer base of early technology adopters, Asia is leading the charge for the mainstreaming of P2P mobile transaction solutions and is poised to lead in adoption of consumer-facing cryptocurrencies, especially those that are mobile-first.

Alan introducing PhunCoin at a Team DNA event in Beijing

We’re in the midst of a major consumer shift in attitude and support for a blockchain-powered future, particularly where emerging governmental recognition and regulation are helping to demystify cryptocurrencies. According to an ING survey of 11 European countries, the US and Australia, 35% of respondents agree that cryptocurrency is the future of online spending, even though a majority still believe cryptocurrency is currently a more risky than other investments. In another survey from Foley & Lardner LLP, 58% of surveyed American executives expressed a willingness to take on legal risk to invest in or develop cryptocurrency businesses. While much-needed regulation will help pave the way for institutional investors, consumer confidence will bring cryptocurrency mainstream.

Institutional investors have been hesitant to invest in cryptocurrency because of a lack of clearly defined regulations, and this caution extends to consumers. According to the Foley & Lardner LLP study, 84% of American executives expressed a desire for initial cryptocurrency offerings to be regulated by the federal government, states, or both. Consumer hesitation is not surprising given that a recent study from ICO advisory firm Statis Group revealed that more than 80 percent of initial coin offerings (ICOs) conducted in 2017 were identified as scams. Even if a portion of this number can actually be attributed to failed ICOs, it sheds light on the inherent risk of investing in companies with no verifiable track record or operating history.

An interested crowd discovering the PhunCoin vision

These concerns are why Phunware worked diligently with respected industry-leading law firms Wilson Sonsini Goodrich & Rosati (WSGR) and Goodwin Law to launch PhunCoin pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act of 1933. With the backing of a robust technology company with a decade of experience, the PhunCoin ecosystem hopes to set a new industry standard for launching fully compliant cryptocurrencies. At this crucial moment in the development and legitimization of blockchain across the world, PhunCoin has the potential to address both the institutional need for credibility and the consumer’s desire for a paradigm shift in how they engage with brands.