Kakao, a service provider for the large South Korean mobile messaging application KakaoTalk, will create a subsidiary of Blockchain, tentatively called Kakao Blockchain, and is considering the launch of the initial coin offering (ICO), Huffington Post Korea reported today, March 5.
Jae-Sun Han, a partner and chief specialist for the development of the Future Play technology incubator, will become the representative of the new organization. The specific business plan of the subsidiary Kakao Blockchain will be presented on March 20, according to Huffington Post Korea.
Since it is currently illegal to manage the ICO in South Korea, Huffington Post Korea writes that ICO for Kakao will be abroad, most likely in Singapore or Hong Kong. Hypothetical “Kakao Coin” can then be used as the national currency in various applications provided by Kakao, such as KakaoTalk, Kakao Driver and Kakao Games.
Today, on March 5, quoting investor Joseph Young published on Twitter that KakaoTalk and KakaoPay, their mobile payment service, have “90% penetration into the messaging and fintech markets in South Korea”.
Rumors of a complete ban on the cryptocurrency trade in South Korea led to a sharp reduction in crypto-algorithms in January 2018. Since then, the government has clarified that the planned ban of cryptocurrency is not planned.
Last month, the popular Telegram messaging application registered in the British Virgin Islands reported that they raised $ 850 million from 81 investors in what was actually a closed ICO pre-auction. For US investors, Telegram has filed an exception with the US Securities and Exchange Commission (SEC) to ensure that their tokens do not register as securities, and only so-called accredited investors could contribute.