- KB Kookmin Bank’s move is in regard to the approval of a revision to Act on Reporting and Using Specified Financial Transaction Information by the South Korean Government on March 17, 2019.
- Kookmin bank’s entry into crypto space can act as a catalyst to change the entire financial sector of South Korea.
- NongHyup or NH Bank which are major rivals for KB Kookmin Bank announced that they plan to create crypto custodial services as well.
There has been a sudden surge in the number of banks lining up to support crypto custody and Kookmin Bank is making plans to get into action. Recently, the major South Korean Bank announced that it is set to launch cryptocurrency custodial services. For this, the bank has made a pact with Blockchain venture fund Hashed, the digital asset trading platform, Cumberland Korea, to establish strategic technology cooperation on the custody of digital assets.
In January, a trademark named KBDAC – Kookmin Bank Digital Asset Custody was filed by the Bank with the Korean Property Office. The trademark covers more than 20 areas that are related to crypto including trading, consultation, and management of digital assets like Bitcoin (BTC) and Ether (ETH).
Pioneering Crypto Services in South Korea
KB Kookmin Bank’s move is in regard to the approval of a revision to Act on Reporting and Using Specified Financial Transaction Information by the South Korean Government on March 17, 2019. Under the new law, all the cryptocurrency exchanges in South Korean must use the real-name system by partnering with financial institutions that can provide this service. Banks are obliged to conduct such services by properly reporting to the Korea Financial Intelligence Unit (KOFIU).
To explore more about digital asset management and protection solutions, the bank partnered with Atomrigs Lab in June 2019. However, an official launch date has not been announced. Meanwhile, the bank is testing the technology which generates random key shares instead of a fixed private key.
Early in July, NongHyup or NH Bank which are major rivals for KB Kookmin Bank announced that they plan to create crypto custodial services as well. The fact that the bank applied for trademark suggests most of the product development is now done meaning the launch date for service may not be far off.
A Better Financial Sector in the country
KB Kookmin Bank is one of the four major banks ranked by asset value in South Korea. Both Hashed and Cumberland Korea indicated that the changes in regulation can support cryptocurrency and other blockchain-oriented business models. While the Banks Spokesperson believed that there will be a massive shift in the financial field soon and all the banks in South Korea must be prepared for it. Additionally, they noted that the digital asset industry not only includes cryptocurrencies but also traditional assets such as real estate and artwork which is issued and traded on blockchain platforms.
The bank’s entry into crypto space can act as a catalyst to change the entire financial sector of South Korea as it drives top rival banks like Shinhan, Hana, and Woori to get into the industry. South Korean lawmakers voted to place stricter anti-money-laundering rules for crypto firms. South Korea is exploring ways on how to impose a tax on cryptocurrency profits. The announcement by Kookmin Bank suggests that the nation is taking steps in the right direction from the nation’s previous stance to ban ICOs in 2017.