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South Korea’s Banks May Increasingly Adopt Crypto Operations

South Korea Passes New Cryptocurrency Law

The conventional finance firms of South Korea are increasingly turning towards the example that was set by Nonghyup (NH Bank) in regards to the crypto industry. This was expressed by academics, industry insiders, as well as experts. These groups speculate that regulators may start offering the green light for banks to venture into the crypto industry at large.

Plans Of Expansion

It was reported earlier this week that NH had announced the beginning of its crypto custody services for industrial investors. Furthermore, the bank is working alongside Virtual Asset Service Providers (VASPs) in order to explore possible business opportunities. Furthermore, NH has made it clear that it’s seeking to offer securities token custody, as well as a custodial service for digital fiat currency. This, of course, is assuming that the Bank of Korea agrees to go ahead with the rollout of a digital Won.

However, as a report from EBN highlights, more banks are keen on following the example that NH has set out within Korea.

Rivalries Already Forming

Kookmin (KB Bank) stands as the rival of NH, and has already registered a brand and trademark name with the Korea Intellectual Property Office. This brand, named KBDAC, is hinted at being the preparation of the bank to move into the crypto market in the future, according to EBN.

The trademark application that KB had made stipulated that the business will deal with the trading of crypto assets as well as information provision. Furthermore, the bank plans to offer consultation and management under this brand, as well. Experts on the matter speculate that more is to come in regards to this matter.

A Mixed Reception

EBN stated that the crypto exchanges are quite nervous, fearing that they will be edged out of the market once the banks get a hold of them. This is set to occur when the conventional finance sector finally incorporates the crypto markets, turning it into mainstream finance.

EBN quoted an anonymous employee of a crypto exchange. This employee stated that crypto exchanges at large have been struggling to comply with the government regulations that were brought before them. Now, however, the employee explained that the big banks of Korea are taking part in the crypto sector, and speculates that they will have a far better experience navigating the regulations.

Others, however, have shown optimism. Park Soo-yong, a specialist in Blockchain, as well as a professor of computer science at the Sogang University, is one of those optimists. He stated that the finance sector moving into the crypto space is a natural process, praising it as a statement of how far the crypto industry has come. He speculated that the crypto market will only be expanded through this.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.