Digital Currency Group (DCG) has made a strategic investment in a South Korean crypto exchange, despite the possibility of tighter regulations of crypto exchanges in the country.
- The crypto-focused venture capital company, also the parent company of CoinDesk, is now the second-largest shareholder in blockchain company Streami, according to an emailed announcement Thursday.
- The amount of the investment wasn't disclosed.
- Streami is the operator of crypto exchange Gopax, which has a 24-hour trading volume of about $115 million, according to CoinMarketCap data.
- The investment suggests DCG is not concerned that Gopax will be hurt by the country’s increased scrutiny of the crypto industry.
- Exchanges in the country have until Sept. 24 to register as virtual asset service providers (VASPs), allowing the state to determine the legality of a company’s operations as regulators crack down on money laundering and fraud.
- The head of the Financial Services Commission, South Korea’s regulator, suggested in April that all crypto exchanges in the country could be shut in September because no exchanges had registered.
- The investment deal also sets up a partnership between Streami and Genesis, a digital-asset lender and DCG subsidiary, that will see Gopax harness Genesis’ liquidity pool to offer savings products.
- In December, Gopax launched its savings product Gofi, which has $600 million in deposits.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.