According to a July 11 report by The Korean Economic Daily, the bank’s banking group, Woori Woori Financial Group is the latest major South Korean financial institution to announce the launch of digital property custody services.

The bank has entered into a partnership with bitcoin-based financial technology company Coinplug to create a joint venture custodian called D-Custody.

Coinplug becomes D-Custody’s largest shareholder, followed by Woori Bank. The joint venture is expected to be merged in the coming weeks.

Current Korean legislation states that local organizations do not have access to cryptocurrency exchange services, which means that the country’s banks can only enter the cryptocurrency market through investments in joint ventures.

Although it is forbidden for local banks to enter the market for the storage of digital assets directly, an increasing number of large Korean financial institutions are establishing joint stock companies to gain a foothold in the industry. A spokesman for Woori Bank said:

“In foreign markets, digital asset custody has become a successful and well-established practice among the new services offered by banks.”
As of August 2020, four of the five largest South Korean banks have announced that they will launch cryptocurrency custody services, including Kookmin Bank, Shinhan Bank, NH Nonghyup Bank and Woori Bank.

About the topic: Small crypto exchanges in South Korea are facing increased regulatory heat

Kookmin, the country’s largest financial institution, applied for a trademark for its custody service in March 2020, before the establishment of Korea Digital Asset Co. in November. in collaboration with the venture capital fund Hashed and the local blockchain service company Haechi Labs.

In June 2020, Nonghyup Bank launched a blockchain financial consortium in collaboration with blockchain developer Hexlant when the group announced plans to start a custodian business with Korea Information & Communications Co.

In January 2021, Shinhan Bank announced that it had made a strategic investment in a cryptocurrency storage consortium, a Korean digital asset fund backed by major local exchanges Corbit.

Source: CoinTelegraph

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