Posted 2 years ago | by Ben Armstrong
Kakao Looks to List Token on Exchanges
According to a report from Korean news service News 1, South Korea’s Kakao would like to list its cryptocurrency on an exchange.
It may not be able to do so domestically. In an ironic twist, the Korean government may prevent Kakao from choosing a platform in its home country, even though the company is looking at two possible exchanges in China and Korea.
An anonymous news source claimed that Kakao is “just too big to ignore” and that it would be difficult for the government to allow the trading.
Possible Problems for Kakao
According to recent data from the Fair Trade Commission, Kakao is the 36th largest conglomerate in the country, with 10.6 trillion won ($8.8 billion) in assets.
The company offers multiple services, from finance to entertainment. In the realm of social media technology, the company’s KakaoTalk instant messenger app is reported to have over 400 million users, although only about ten percent of those are considered active.
KakaoTalk will receive a boost from the development and addition of the Klip wallet, which will support Klay. It will be introduced officially in the fourth quarter of the fiscal year.
Korea is Worried
It is well known that the Korean government has been concerned about the use and exchange of cryptocurrency in the country since 2017.
During the heavy trading of 2017 and early 2018, the government initially banned coin offerings, which created major obstacles in cryptocurrency development. With this initial ban in place, crypto exchanges could not open proper bank accounts for operations and conversions of crypto to fiat.
Although the government has softened its stance since 2017, allowing for “gray” area activity, the news story suggests that the authorities are not willing to compromise their policies for Kakao. Current acceptable cryptocurrency practices include the use of normal corporate accounts by exchanges and the trading of offshore coins.
Looking for Way Forward
This search for a listing appears to be an about face for the company. In late 2018, Jae-Sun Han, the CEO of Ground X, states that Klay would not be traded on exchanges, since it was designed mainly for developers seeking to utilize the company’s Klaytn public blockchain platform.
However, if the government has its way, then the listing will not happen in Korea, and Han’s 2018 claim may remain true.