South Korean messaging giant Kakao is set to list its cryptocurrency token Klay on Upbit Indonesia.
Klay Token Gets First Cryptocurrency Exchange Listing
According to The Korea Times, Upbit Indonesia will be the first cryptocurrency exchange to list the Klay token. News first emerged of a possible listing earlier in September with a focus on securing an Asian-based exchange.
Commenting on the planned listing, a spokesperson for Kakao noted:
We decided to list Klay on cryptocurrency exchanges in the respective countries, as we aim for Klaytn to become an Asia-based platform.
Klay is Kakao’s native token for its public blockchain platform Klatyn, developed by Ground X — the messaging giant’s blockchain subsidiary. Reports indicate that there are plans to make Klatyn a gaming-focused platform.
Back in 2018, Kakao’s private token sale raised about $90 million. As previously reported by Bitcoinist, the company announced plans for another funding round in mid-March 2019.
Kakao reportedly has over $8 billion in assets under management (AUM), putting the company in the top 50 South Korean conglomerates. Its messaging service — KakaoTalk, has more than 400 million users.
Ground X already has strategic partnerships with Asian tech conglomerates including Samsung and LG. The Samsung collaboration includes plans to have a Klay crypto wallet app on Samsung smartphones.
South Korean Blockchain Projects Snubbing Local Exchanges
Kakao is yet another South Korean company that has chosen not to list its cryptocurrency token on a local exchange. Such is the extent of the trend that other Asian-based exchanges are opening Korean won accounts as a way of attracting more startups from the country.
Tougher domestic crypto policies are seeing projects listing their early-stage projects on overseas platforms. According to reports, Korean exchanges are not allowed to process deposits or withdrawals in the local fiat currency.
These restrictions have begun to put a significant strain on the local crypto trading scene. Back in late August, Business Korea reported that close to 97% of the country’s exchanges were facing bankruptcy.
In 2018, only one of the “Big Four” cryptocurrency exchanges in South Korea reported a profit. Some smaller platforms have even closed down their operations citing increased regulatory scrutiny.
Many of these smaller exchanges reportedly find it difficult opening and operating bank accounts. The major platforms also have to comply with stringent anti-money laundering (AML) policies before they can receive banking support.
What do you think about South Korean projects choosing to list their tokens on overseas cryptocurrency exchanges? Let us know in the comments below.
Images via Shutterstock
Let’s block ads! (Why?)