The largest South Korean bank will become a custodian of cryptocurrencies
Bank will open service thanks to agreements with Hashed and Cumberland
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Financial institution decision followed for providing American banks with the opportunity to engage in storage cryptocurrencies
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One of the largest commercial banks in South Korea – Kookmin Bank (KB) – will be engaged in the storage of cryptocurrency.
The financial institution will provide his new service to customers thanks to the Hashed blockchain venture capital fund and exchange Cumberland Digital Assets Partnership Arrangements. Information about this appeared on blogs companies-participants in the initiative.
What is known about the project
According to Hashed and Cumberland, the deal with KB was made possible thanks to changes in the regulation of the crypto industry by the South Korean authorities. Legal norms established in the country open up opportunities for the development of crypto and blockchain for industry participants-projects.
Photo of the Hashed team from the date of signing the agreement with Kookmin Bank
“Combining our understanding of the possibilities of the blockchain industry with access to technical and commercial advice will lead to open to the participants of the industry and the country in the whole new development opportunities of the era digital transformation “, – this is how Hashed CEO Simon Kim commented on the agreement.
Korea is not the first country to have financial institutions which began to provide participants market crypto custody services. Late July 2020 of the year American banks received permission from local regulators to create services for storage of digital assets. Against the background of the news course bitcoin came out in growth.
Federally Chartered Banks and Thrifts May Provide Custody Services For Crypto Assets https://t.co/lZS1xj3ZMK
– OCC (@USOCC) July 22, 2020
Kookmin Bank team is working over the formation of a crypto custody service since the beginning of the year. An application for the implementation of the initiative from representatives of a financial institution was received by the Intellectual Property Office of the Republic of Korea in January.
The representatives of the financial institution believe that in the future, participants crypto market not will be limited to work exclusively with cryptocurrencies. According to their opinion, traditional assets also can digitize (via tokenization). Work in this direction, according to the bank, will make it possible to carry out transactions with real estate and even art objects on blockchain. Learn more about tokenization from our material.
READ ALSO: South Korea officially entered the race to develop CBDC
Recall that South Korea, along with Singapore, has become a leader in the regulation of the crypto industry. Since the beginning of the year, the country’s authorities have been discussing taxation issues for industry participants. South Korean regulators believe that tax on income from operations with digital assets should be 20%. find out more about Tom, what decisions are made by tax experts from different countries in relation to members of the crypto community, from our material.
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