Kakao may list Klay cryptocurrency in China due to regulatory issues

South Korean giant Kakao plans to list its cryptocurrency Klay on exchanges, however, it is possible that the company will have to choose foreign sites in connection with the local regulatory regime.

According to News1, Kakao is currently considering two exchanges for possible cryptocurrency trading, one in China and the other in South Korea. However, the government may prevent the company from deciding on a South Korean platform. News1 cites an anonymous official who says Kakao is too big a company to ignore the ban on regulators, and it is likely to be banned from trading cryptocurrencies.

According to the Fair Trade Commission, Kakao is the 36th largest conglomerate in the country, and its assets amount to $ 8.8 billion. The company conducts business in various fields – from finance to entertainment. The KakaoTalk instant messaging application has over 400 million users, although only about 10% of them are considered active. In addition, a subsidiary of Kakao Ground X is developing a Klip wallet that will support Klay cryptocurrency.

The Korean government has long been concerned about the work of the cryptocurrency industry – back in 2017, ICOs and margin trading were completely banned in the country. And although the government has declared its readiness to allow some activity in the gray zone, such as the use of regular corporate accounts by exchanges and the trading of offshore coins, News1 suggests that these concessions are unlikely to affect Kakao.

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Recall that in July Kakao launched the main network of its blockchain Klaytn. Last year, Ground X CEO Jae-Sun Han stated that the Klay cryptocurrency will not be sold on exchanges, as it is intended primarily for developers seeking to use the Klaytn blockchain. This Friday, at the Kakao developer conference in Seoul, Han announced that the Klip wallet will be officially unveiled in the fourth quarter of this year.