Shinhan Bank in South Korea has become the first local financial institution to offer cryptocurrency-related accounts. The bank granted corporate won accounts to the cryptocurrency exchange platform Korbit. Previously, the Korea Federation of Banks (KFB) sought a licence from the incoming pro-crypto administration in order to provide digital assets.
According to reports, this is the first case to be recorded following the passage of the reporting and Use of Certain Financial Transaction Information Act. Previously, corporations would take another indirect route to invest in digital assets. Shinhan Bank is clearly paving the way for institutions to participate in the country’s crypto adoption.
Businesses that have a Shinhan corporate account can invest in cryptocurrency through its partnered exchange Korbit. According to South Korean law, only verified and licensed partnered crypto exchanges are permitted to provide cash-to-crypto services in the country.
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 into the digital asset and custody markets. The bank will provide crypto trading accounts to organisations, allowing them to track money and combat money laundering concerns. However, the selected members of KDAC are participating in the project’s trial run.
According to reports, an industry source believes that the financial transaction information act prohibits the issuance of such accounts. As a result, banks are avoiding the expansion in the corporate crypto investment market. Meanwhile, the Korea Blockchain Industry Association applauded the forward-thinking move. They stated that South Korean companies must follow the global trend of 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 meantime, they are working with K Bank and NH Bank, respectively.
