Shinhan Bank in South Korea has become the first local financial institution to provide cryptocurrency-related accounts. The bank granted corporate won accounts to the cryptocurrency trade site Korbit.
Previously, the Korea Federation of Banks (KFB) sought a license from the new pro-crypto administration in order to provide digital assets.
Shinhan Bank paved the way
Previously, corporations would use another indirect path to invest in digital assets. Shinhan Bank is clearly paving the way for other financial institutions to join the country’s crypto adoption.
According to sources, this is the first case to be recorded following the passage of the Reporting and Use of Certain Financial Transaction Information Act.
Businesses that have a Shinhan corporate account can invest in cryptocurrency through its partnered exchange Korbit. According to South Korean law, only verified and regulated partnered crypto exchanges are permitted to provide cash-to-crypto services in the country.
Account-holders included members of the Shinhan-backed Korea Digital Asset Custody (KDAC). This action demonstrates the bank’s desire to attract corporate finance into the digital asset and custody markets.
The bank would provide crypto trading accounts to organizations, allowing them to track money and combat money laundering problems. However, the selected members of KDAC are participating in the project’s trial run.
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South Korean is following global trends
According to reports, an industry insider believes that the financial transaction information act prohibits the issuance of such accounts. As a result, banks are avoiding expanding the corporate crypto investing industry.
Meanwhile, the Korea Blockchain Industry Association applauded the forward-thinking approach. They stated that South Korean companies must follow the worldwide trend of the virtual asset market.
Shinhan Bank and Korbit are expected to be followed by other digital exchanges such as UPbit and Bithumb. In the meanwhile, they are working with K Bank and NH Bank, respectively. According to reports, South Korea currently has 4,426 corporate investors involved in crypto-to-crypto exchanges.
Source: https://www.thecoinrepublic.com/2022/04/11/shinhan-south-korea-bank-has-become-the-first-financial-institution-to-issue-cryptocurrency-accounts/