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Digital Currency Group (DCG) has made a strategic investment in a South Korean crypto exchange, seemingly unfazed by regulatory tightening 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.
The size of the investment was not 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 move to a stricter regulatory environment.
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 with regard to fraud, money laundering and so on.
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 not one 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 2020, Gopax launched its savings product Gofi, which has user deposits of some $600 million.
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