South Korean IT company Kakao plans to formulate ways to foster the trading of its virtual currency Klay on the Chinese exchange for cryptocurrencies. But the firm might not be able to enlist it locally.
Kakao is renowned and one of the largest corporations of southern Korea. It has assets valued at over 8.5 billion dollars. The firm has its reach across the entire nation with a range of services, like finance, telecom, entertainment, etc.
In 2018, The company categorized into separate entities, the blockchain and crypto industry. It also then announced its initiative of raising $300m via Ground X. Later in March, Finance Magnates said that the company bagged $90m via a private initial offering (ICO).
In September 2017, South Korea halted the operations in blockchain to take the uncontrolled trading ICO of the cryptocurrency to fund a huge capital without maintaining a functioning model of their decentralized service offerings. They also made stringent rules on owning fiat-based financial accounts that provide fiat-crypto operations to the individuals.
According to a report by Business Korea, 97% of the Korean exchanges are undergoing an economic crisis and might be on a brim of bankruptcy given their low trading volume on the platforms. It also highlighted local restrictions on some South Korean blockchain projects that are planning to list the coins on international exchanges.
A news agency from the premises reported that GroundX, the firm’s blockchain initiative, is expected to be in discussion with 2 household names of the exchange platforms to popularise the use of its own products Klay.
Although the Singapore-based company has been nurturing foreign investments in cryptocurrency, it might come across hurdles while troubles are listing Klay on other cryptocurrency exchanges in South Korea.
Kakao’s Klay feels its much safer in a Chinese cryptocurrency exchange as they have extended offerings in the crypto community space. Its high-profile initiatives are backed with a number of several reputed companies. Therefore, the officials are more inclined to halt the trading operations of its tokens in the exchange market. Ultimately, the conglomerate has no other way but to seek international markets, as big as like China, to fuel the trading of its newly launched token.
In the year 2017, the regulators from South Korean said that they had implied nation-wide restrictions on cryptocurrency exchanges disallowing them to access bank accounts to do conversions in cryptocurrencies. A number of cryptocurrency exchanges refrained from the move because they felt it might get difficult to remain in business in case the given situation arises.
Although no system is a perfect one, a lot of them have trading operations carried via corporate accounts, but it appears to be the rare case if the critical disruption by a well-known name will be overlooked.