South Korea’s Shinhan Bank has become the first local financial institution to offer crypto accounts.
Korbit, a cryptocurrency exchange platform, has received corporate won accounts from Shinhan Bank. Previously, the Korea Federation of Banks (KFB) had applied for a license to provide digital asset services from the incoming pro-crypto administration.
This is the first case reported following the passage of the Reporting and Use of Certain Financial Transaction Information Act, according to reports. Previously, corporations had to take a different, more indirect approach to investing in digital assets. Shinhan Bank is obviously paving the road for institutions to participate in the country’s crypto adoption
Businesses with a Shinhan corporate account can invest in cryptocurrency through Korbit, Shinhan’s partnered exchange. Only verified and licensed partnered crypto exchanges can provide cash-to-crypto services in South Korea, according to regulations.
Members of the Shinhan-backed Korea Digital Asset Custody (KDAC) were also among the account holders. This action demonstrates the bank’s desire to attract corporate funding to the digital asset and custody markets. The bank would provide crypto trading accounts to organizations, allowing them to track funds and combat money laundering problems. The selected members of KDAC, on the other hand, are putting this idea to the test.
According to reports, the financial transaction information legislation is expected to prohibit the issuance of such accounts, according to an industry source. As a result, banks have shied away from expanding the corporate crypto investing industry. The Korea Blockchain Industry Association, on the other hand, praised the forward-thinking initiative. They stated that South Korean businesses must follow the global trend in the virtual asset market.
Other digital exchanges, such as UPbit and Bithumb, are expected to follow in the footsteps of Shinhan Bank and Korbit. In the meanwhile, they’re working with K Bank and NH Bank, respectively. South Korea has 4,426 corporate investors dealing in crypto-to-crypto exchanges, according to a report.