What Policy We Need for Cryptocurrency Blockchain and ICO to Facilitate Funding and Innovation for SMEs?

We discuss in this paper the cryptocurrency Blockchain and ICO from the perspective of SME financing and business innovation, and figure out policy directions. Blockchain is a new way of recording in which all terminals on the network share information, thereby eliminating the need for reliability verification (“Trustlessness”). Cryptocurrency is paid as compensation for maintaining such recording system. DApp (Decentralized Application) Coin, which is based on existing cryptocurrencies, is a token, which allows entrepreneurs and ventures to raise funds only with ideas and visions. ICO, or token generation financing, is characterized by its ability to raise funds only at future values. Although the speculative nature of ICO is controversial, it is necessary to implement policies to minimize the adverse effects of investment in cryptocurrency and to make the most of cryptocurrency blockchain for SMEs. The main challenges are as follows. First, by using the blockchain technology in the SME supply chain, if pre-set conditions are met, subcontractors will be automatically paid. Second, by introducing blockchain technology to unlisted stocks which are distributed in the form of “stock non-issuance certificate,” liquidity is given to unlisted stocks. Third, it is necessary to establish a private blockchain in which government organizations and agencies participate, and implement smart contracts to automatically support applicants when they meet agreed conditions.