The holders of Link digital currency, launched recently by Japanese messaging app giant Line, cannot use it for now, due to regulatory restrictions.
According to a report by Quartz, the users of Line in Japan and the US will not be able to use the coin over licensing problems, but no more details are made available.
Last week Line announced it is launching the Link coin and its own blockchain network – Link Chain. The Link coin is supposed to be used within the blockchain as payment and rewards for various services and the decentralized applications (dApp) system to be launched shortly.
The coins are meant to be distributed to the users of Line for accessing and using various applications within the system. Line also has plans to add Link as a tradable asset on the Singapore-based cryptocurrency exchange Bitbox, which it acquired recently, planning to speed up its licensing procedure in Japan.
Now, it seems, the initial plans of Line for the Link coin might have to be postponed.
Meanwhile, Line Corp announced it is issuing convertible bonds to fund its expansion into the financial services business. The zero coupon convertible bonds, maturing in 2023 and 2025 are to raise JPY 148.1 billion yen ($1.33 billion), mainly for the development and expansion of Line’s payments app Line Pay and its financial services abilities. Line aims to increase the number of clients, the volume of money transfers going through the app, and the number of merchants supporting Line Pay.
At the end of 2017, Line Pay, which was launched in 2014, had over 40 million users. It supports peer-to-peer money transfers between users of the app and online and offline payments with affiliated merchants.