Venture capital firm Andreessen Horowitz's (a16z) crypto division is expanding its reach into Asia with the opening of its first office in Seoul, South Korea. This move signifies a major bet on the Asian market, where cryptocurrency adoption is rapidly growing.
A16z crypto has appointed SungMo Park as Head of APAC go-to-market to lead the Seoul office and spearhead the firm's expansion in the region. Park's extensive experience in both enterprise and crypto-native ecosystems, including his previous roles at Monad Foundation and Polygon Labs, positions him well to drive a16z crypto's growth in Asia. He also speaks four languages: Korean, Japanese, Chinese, and English.
The decision to establish a presence in South Korea is strategic, considering the country's position as the second-largest cryptocurrency market globally, with nearly one in three adults owning cryptocurrency, surpassing even stock ownership rates. A16z crypto's research indicates a strong concentration of on-chain activity in Asia, making it a key growth market for its portfolio companies. Japan has seen on-chain activity grow 120% in the past year. Singapore has one of the world's highest rates of crypto ownership, including 40% of Gen Z and Millennials. India is ranked first in Chainalysis's Global Crypto Adoption Index, and 11 of the top 20 countries are in Asia.
The Seoul office will serve as a hub for providing go-to-market support to a16z crypto's portfolio companies, helping them accelerate growth, forge strategic partnerships, and build lasting communities across Asia. SungMo Park will work closely with founders within the portfolio, leveraging his corporate network to strengthen market connectivity and accelerate crypto adoption throughout the continent.
While Hong Kong and Singapore have traditionally been financial hubs, a16z crypto views Seoul as a more suitable base for its Asian operations, citing the country's active development ecosystem and high on-chain participation. South Korea boasts large exchange trading volumes and a significant percentage of the population holding crypto assets.
A16z crypto's expansion into Asia reflects a broader trend of digital asset companies seeking opportunities in the region, drawn by clearer regulations and a substantial user base. However, the Seoul office may encounter regulatory hurdles typical of foreign crypto ventures. Foreign Virtual Asset Service Providers (VASPs) targeting Korean users must register with the Korea Financial Intelligence Unit (KoFIU) and obtain Information Security Management System (ISMS) certification.
A16z crypto has raised over US$7.6 billion across four funds. The firm plans to expand its capabilities and explore further geographic expansion in the coming years.
