Japan’s current regulation only allows banks to indirectly enter the market through JV or share investments
Another major Korean bank will provide crypto custody services. Source: pexels.com
According to Kedglobal.com, Woori Woori Financial group is now the leading firm to offer digital asset custody services in South Korea.
This service will be offered through a joint partnership with Coinplug, a fintech company that specializes in Bitcoin. The two will form D-Custody, a joint digital currency asset venture.
Coinplug has the largest shares in the partnership followed by Woori Bank. The two look to have the venture up and running in the coming weeks.
Domestic firms are prohibited from accessing crypto exchanges by Korean legislation. This means that they have to partner with other firms through joint ventures or share investments. This has enabled many local financial institutions to enter the digital currency custody market.
In August 2020, four major financial institutions in South Korea including Shinhan Bank, Woori Bank, Kookmin Bank and NH Nonghyup Bank had set their intent to offer the custody of digital currencies.? In March 2020, Kookmin had filed for a trademark request before the establishment of Korea Digital Asset co. This was a partnership with Haechi Labs, a local blockchain provider and Hashed, a venture fund.? Kookman is the dominating financial institution in Korea.
In June 2020, Nonghyup Bank and Hexlant, a blockchain developer, launched a blockchain financial services consortium. The group plans on launching a custody venture. This will be a partnership with Korea Information & Communications Co.
In January 2021, Shinhan Bank invested in the crypto custody consortium. This is supported by Korbit, a major local exchange.
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