By : According to CoindeskKorea, a crypto publication operated by mainstream media outlet Hankyoreh, Samsung Electronics is reportedly developing an -based ERC20 and is currently in the process of creating a mainnet.
A source of the publication within Samsung Electronics said that the task force of the company has already tested several versions of a protocol on top of .
“ task force made several models and are evaluating [them]. There are already several platforms that are functioning after some internal tests,” the source told .
The report comes two months after Samsung Electronics the Samsung Wallet, essentially an ERC20 featured on its flagship Galaxy S10.
Samsung Integrating a Crypto Wallet Now Makes Sense
When Samsung first released its crypto in February, some investors were taken aback by the fact that the device currently does not support a service and is primarily focused on .
“Galaxy S10 is built with defense-grade Samsung Knox, as well as a secure storage backed by hardware, which houses your private keys for -enabled mobile services,” the company said.
Samsung, the world’s largest mobile manufacturer, is now including built-in crypto wallets on its flagship device – the Samsung Galaxy S10. | Source: Shutterstock
Some also pondered the motive behind Samsung’s rush towards integrating a crypto as even smaller smartphone makers with the exception of HTC had not integrated a fully functioning crypto feature.
If Samsung has been developing an ERC20 and a protocol around it as suggested by local reports, then it is sensible for the company to integrate a to provide an easy-to-use platform for users.
How Would Samsung Launch a Token When Policies in South Korea Prohibit ICO?
In South Korea, companies are not allowed to issue via initial coin offering (ICO) and investors cannot invest in domestic ICO projects.
As such, companies have moved to overseas markets in the likes of to conduct private sales to bypass the regulatory frameworks imposed by the local financial companies.
For a company like Samsung, it would most likely not be able to circumvent local regulations because of the immense impact the company has on various sectors in South Korea.
South Korea’s financial authorities have currently outlawed initial coin offerings (ICOs) in the country. | Source: Shutterstock
Any action taken by the company in an emerging market like crypto could set a precedent for the rest of the industry, which may lead the company to be more cautious with its operations.
A company insider told local publications that due to the policies in place, the company is gearing towards a private in a business-to-business (B2B) route but no plans are finalized as of yet.
The source said:
Currently the company is considering a private with a B2B approach but nothing is set in stone. In the long-term, the company could shift to a public but as of now, the company is likely to go with a public and private hybrid-type .
It Could Take a Long Time
Although South Korea is known to be a pro-crypto and pro- country, many areas within the global sector remain untouched by the local authorities.
In regards to ICOs, for instance, it is unclear whether local companies could establish subsidiaries in overseas markets and conduct sales abroad to circumvent regulatory frameworks.
Samsung is expected to wait for the authorities to clarify policies around the crypto sector before comfortably engaging in the space.
“The market is anticipating the launch of Samsung Coin but the direction is not finalized,” the insider reportedly said, suggesting that is the biggest hurdle for the company.
The source also added that the involvement of Samsung Pay, at the current juncture of the project, is uncertain and as of now, Samsung Pay is not directly associated with the project.
Hat tip to CoindeskKorea.
Published at Wed, 24 Apr 2019 11:40:35 +0000
