Few would deny the global impact that the crypto industry has had, as it is not just primarily limited to the United States, but rather nearly all countries across several continents have gradually become relatively more accepting towards crypto despite initial hesitation. Of course, there are those who still remain hesitant, and some continue to adopt an aggressive stance towards the new digital asset class as well as decentralized finance (DeFi) in general, chief among which being nations such as China.
Nevertheless, one of the major banks in South Korea has recently announced that it shall be adding cryptocurrency custody services for its clients. Several banks have, in fact, begun forming joint ventures alongside minor ownership in an attempt to take part in the market for crypto custody, and most if not all of these institutions are also actively complying with the country’s rules and regulations.
Woori adds crypto custody
A report from yesterday had indicated that one of the biggest banks in the nation, Woori Financial Group, is now the latest financial institution in South Korea to launch custody services for digital assets, in which cryptocurrencies shall be included.
As such, the bank shall be collaborating with Coinplug, a Bitcoin (BTC) based company which focuses on providing fintech solutions. The purpose of this partnership is to create D-Custody, a joint venture designed to help with the aforementioned custody of the digital assets.
Moreover, due to the country’s pre-existing laws and legislation, local entities shall not be permitted to access any of the services that the crypto exchanges may offer, which means that South Korea’s banks will only be allowed to realistically participate in the cryptocurrency market through the share investments’ joint ventures.
A strong position must be established
Although the country’s banking institutions are prevented from being able to enter the market directly, more and more financial institutions shall be establishing the abovementioned joint ventures (which will also have partial ownership) in order to form a strong position within the industry.
A representative from Woori Bank had said that if we were to discuss international markets, then we would often observe that having custody of digital assets has now been deemed essential in order for banks to be successful.
In related news, a few other South Korean banks have additionally announced intentions of launching similar custody services as well, and these include Shinhan Bank, Kookmin Bank, and finally NH Nonghyup Bank.