The South Korean cryptonews today show that domestic businesses and big companies like Samsung and LG are stepping up their cryptocurrency game and want to expand, partnering with overseas companies rather than domestic players. This is part of a strategy that has begun to take shape in the past few weeks.
As we previously reported, Samsung struck a deal with the American crypto exchange player Gemini last week, in a deal which saw the tech giant integrating Gemini exchange functions for its flagship Galaxy smartphones. The features will include a Blockchain Wallet in both the United States and Canada, allowing users to buy and sell crypto as well as make use of the Gemini Custody cold wallet storage functions.
Meanwhile, LG is also in the blockchain news for becoming a member of the governance council of the Dallas-based Hedera Hashgraph (HBAR) project and the company agreed to run a node on the latter’s network.
Both Samsung and LG seem to be more interested in the cryptocurrency game and market than ever before. According to reports from Hanguk Kyungjae, the move is part of a concerted effort which has been initiated partially because of the COVID-19 pandemic.
For those of you not following our coronavirus news, the COVID-19 outbreak forced a lot of companies to explore new technologies (contact-free) and solutions or business models that will make use of crypto in the best way possible.
The South Korean media outlet also quotes an unnamed industry insider that is stating that big companies like Samsung and LG are keen to tap into the potential of crypto but would prefer to partner with strong and high-potential players in the United States, where they feel the market is more advanced.
The only “third factor” stopping them from continuing their plans with overseas companies right now are regulatory concerns. The media outlet also quoted another unnamed South Korean industry chief as stating the following:
“Due to regulatory uncertainty and the government’s reluctance to cooperate, large domestic companies are choosing not to pursue cooperation with domestic [crypto] companies.”
In short, this industry chief said that the South Korean crypto regulation was “still inferior” to the regulatory frameworks in countries such as Japan and the United States. One domestic insider said that Samsung and LG do have strong relationships with its tech giant Kakao, which recently introduced a new crypto wallet.
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