South Korea’s Shinhan Bank has become the first local financial institution to issue cryptocurrency related accounts. The Bank released corporate won accounts to crypto exchange platform Korbit. Earlier, the Korea Federation of Banks (KFB) was looking for a license from the incoming pro-crypto administration for providing digital assets services.
Shinhan bank makes way for crypto-investment
As per reports, this is the first case recorded after the execution of Reporting and Use of Certain Financial Transaction Information act. Earlier, Corporations used to take another indirect route to make a digital asset investment. Shinhan Bank is clearly making a way for institutions to join the crypto adoption in the country.
Business organisations registered with Shinhan’s corporate account can infuse their money into crypto with its partnered exchange Korbit. As per South Korean regulation, only verified and licensed partnered crypto exchanges can extend cash-to-crypto services in the country.
The account holders also included Shinhan-backed Korea Digital Asset Custody (KDAC) members. This move highlights the bank’s motive to attract corporation funding into digital assets and custody markets. The bank will provide crypto trading accounts to the organisations which will eventually track the money and counter the money laundering concerns. However, the selected members of KDAC are on the trial run of this project.
South Korean companies need to follow global trend
According to reports, an industry source said that the financial transaction information act has been projected as forbidding the issuance of such accounts. This has resulted in banks avoiding raising corporate crypto investment market. Meanwhile, The Korea Blockchain Industry Association appreciated the progressive move. They said that South Korean Companies need to follow the virtual asset market’s global trend.
Other digital exchanges like UPbit and Bithumb are also expected to follow Shinhan Bank and Korbit’s route. Meanwhile, they are in collaboration with K Bank and NH Bank, respectively. According to Yahoo.Finance, till now, South Korea has 4,426 corporate investors dealing in crypto-to-crypto exchanges.
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