South Korean internet company Kakao is seeking ways to enable trading of its cryptocurrency Klay on a Chinese cryptocurrency exchange, however, may not be allowed to list it locally.
A local news agency News1 recently reported that Kakao’s blockchain extension, GroundX, is in discussions with two unnamed but popular cryptocurrency exchange platforms for facilitating the trading of its token Klay.
However, because its Singapore-based subsidiary has been garnering cryptocurrency foreign investments, it may face troubles getting Klay listed on South Korean exchanges.
Kakao is one of South Korea’s largest corporations and has assets worth over eight billion dollars ($8.8 billion). The company has a nation-wide reach with a myriad of services, from finance and telecom to entertainment.
Kakao’s Klay finds safe haven in a Chinese cryptocurrency exchange
With GroundX, it has extended its presence in the crypto community space as well. Its digital assets project bagged backing from several well-known companies, and as a result, the government is likely to prohibit its token from trading in the local exchange market. Now, the internet giant is left with no option but seeking international markets, such as China, for its token trading.
In 2017, the South Korean government announced nation-wide restrictions on cryptocurrency exchanges and prohibited them from accessing bank accounts for cryptocurrency to fiat conversions. Several cryptocurrency exchanges called it quits as they found it increasingly difficult to sustain their services.
Although the system is not devoid of loopholes, such as accessing through corporate accounts, it seems highly unlikely that gray area exploitation by such a massive company will go unnoticed.
Following the South Korean government’s crackdown on ICOs, the region’s one of the biggest internet conglomerates decided to base GroundX headquarters in Japan. Since its beginnings last year, the blockchain arm has been on a mission to raise three hundred million dollars ($300 million) for development and enhancements in its token Klay.