Woori Bank of Woori Financial Group is now providing digital asset custody services (DACS) in a joint venture (JV) with a bitcoin-based fintech solutions provider Coinplug Inc. With a hike in popularity, Digital asset custody services are spreading across institutions in South Korea.
South Korea’s KB Kookmin Bank, largest among the top four banks in the nation, became the first to have entered the DACS market with Haechi Labs, a local blockchain firm, along with Hashed, a blockchain-oriented venture fund. To implement the same, KB had set up a Korea Digital Asset Co. (KODA) last year. Following KB, Shinhan Bank joined the clan of crypto in Korea in 2021. Shinhan Bank became a strategic investor of Korea Digital Asset Custody Co. (KDAC), a DACS company founded by the digital asset exchange Korbit.
The newest addition has been this month itself, with NH Bank’s announcement of its upcoming joint venture (JV) in Digital asset custody services with Korea Information & Communications Co. and Hexlant Inc., a blockchain startup that develops digital wallet technologies.
“The digital asset custody contracts must abide by the same customer identification and anti-money laundering systems currently run by the banks. Unlike the cryptocurrency trading business that has a high level of uncertainties, the banks understand that the digital asset custody business can be largely under their control and also falls under their expertise area,” said KODA COO Cho Jin-Seok, former chief of KB Kookmin Bank’s IT Technology Innovation Center.
Joint Ventures in DACS; low risk & high profit
There has been a significant hike in the demand for digital asset custody services in Korea, as more and more organizations have started to invest in cryptocurrencies.
Trending Stories
After the 2017 crypto boom, Korea tightened its crypto regulations, and to this day, local Korean investors are finding loopholes to actively participate in the crypto community. The demand to waive off rigid regulations on crypto trade and exchange has been rising with an increased threat to the security of present digital asset holdings.
It is against the law in Korea to use services facilitated by crypto exchanges, which has led to high-risk storage of large crypto investments in USBs. Institutions are demanding banks to store their digital assets, however Korean laws do not allow the banks to directly enter the DACS market, leading to DACS JVs with only partial ownership.
- Institutional Traders Are Shorting Bitcoin At Record Pace, Here’s Why
- Lido Shut Down Terra Support, Starts bLUNA And stLUNA Withdrawal
- This Whale Adds 787 More Bitcoins As Price Struggles
- After Vauld Suspends Withdrawals, These Crypto Exchanges Could Be Next
- Cardano’s Vasil Upgrade Goes Live On Testnet; When Will It Be Lauching On Mainnet?
- How Stable Is Tether? Data Shows USDT At Massive Liquidity Imbalance
- As BTC Plummets to $19,000, Elon Musk’s Tesla Reports $440 Million Impairment Losses
- British Army Regains Control Of Their Hacked Social Media Accounts Promoting Crypto Scams
- Bitcoin Miners Likely Behind Crash Below $19K, Here’s Why
- India’s Crypto Exchanges In Trouble? 1% Tax Keeps Traders Away
- THORChain Price Analysis: Reversal Pattern Aim RUNE Price to Hit $3.4
- Sandbox Price Analysis: Cup & Handle Pattern Aims SAND to Reach $1.5
- AVAX Price Analysis: Breakout Rally Eyes $22.1 Mark; Buy Now?
- Cardano price Analysis: ADA Price Nearing Triangle Breakout Eyes $0.655
- Polygon Price Analysis: $0.45 Fallout could Plummet MATIC price by 25%
- ETH Price Analysis: Can $1000 Support Undermine Selling Momentum?
- BTC Price Analysis: Technical Indicator hints Upcoming recovery for Bitcoin
- CRV Price Analysis: Buyers Prepare To Boost CRV Prices To $1
- DOGE Price Analysis: Pullback Opportunity Eyes its Next Jump to $0.1
- Sandbox Price Analysis: Emerging Pattern May Soar SAND price by 20%