South Korean tech giant Kakao Company has stated that it will discontinue its encrypted asset services through Kakao Pay, effective February 16, 2024.

Kakao Pay has been a prominent mobile payment and digital wallet service player in South Korea's financial landscape since its establishment in 2014.

The service facilitates various financial transactions, including mobile payments, online transactions, and bill payments via its smartphone app, employing near-field communications and QR codes for contactless payments.

Growing Service Suite

Over the years, Kakao Pay expanded its services to cover a broad spectrum of financial offerings, from online and offline payments to money transfers, membership services, and authentication.

In 2018, the platform diversified into investment services and subsequently incorporated credit rating, loans, and insurance, enhancing its users' access to diverse financial solutions.

Despite its growth, Kakao Pay faced challenges, notably terminating a stock purchase agreement with Siebert Financial in late 2023 and grappling with regulatory issues, including a call for a review of its taxi app practices by South Korea's President Yoon Suk Yeol, citing concerns about monopolistic behaviors.

This move comes in the wake of a 27% decline in Kakao Company's shares over three months, reflecting heightened concerns about regulatory uncertainties impacting the company's valuation.

The decision aligns with a broader trend of fintech companies reassessing their cryptocurrency services in response to evolving regulatory landscapes.

Related: Kakao's Former CEO Under Investigation for Crypto Embezzlement