South Korea has emerged as the global hub for blockchain and cryptocurrency development. With the South Korean government strongly backing blockchain in the nation, many heavyweights from diverse backgrounds have started joining the bandwagon too.
According to the recent reports, the Korean mobile messaging app, Kakao, is using its blockchain arm ‘GroundX’ for extending its reach in the crypto-market. Kakao will be launching its native token, ‘Klay,’ on a few Chinese exchanges, these reports added.
Kakao is a major South Korean conglomerate that offers services ranging from finance to entertainment, under its umbrella. With its blockchain arm, the organization is planning to boost its presence in the cryptoverse as well. Here, it is important to note that Kakao might face difficulties in launching its token as it has previously attracted investments from several big-league members for its digital assets project. One of the officials was quoted as saying,
“Ground X has attracted investment in cryptocurrency in Singapore, so it will be difficult to list in Korea. The government will not stay quiet.”
The South Korean government has banned Initial Coin Offerings [ICO], as the government is concerned about crypto in the country. Hence, GroundX began its ICO operations from Japan as South Korean laws posed hurdles for crypto-exchanges to run efficiently using bank accounts for exchange-related operations.
The South Korean government has been allowing exchange operations, but within restrictions; examples include the use of business-related accounts by exchanges. With the country posing such hurdles, Kakao is planning to go forward by launching its native token over Chinese exchange soon.