With other major countries such as China and Japan joining the global race for central bank digital currency (CBDC), South Korea’s financial institutions are increasingly demanding to gain exposure in blockchain-based financial assets and services.
Major Tie Up
KB Kookmin Bank (KB), the largest commercial bank in South Korea, has agreed a deal with blockchain venture fund Hashed and crypto exchange Cumberland Korea to provide bitcoin custody services.
Indeed, on July 22, the U.S. Office of the Currency Controller (OCC), an autonomous U.S. Treasury agency, released a public letter clarifying that national banks and federal savings associations are legally required to keep cryptocurrency assets in custody.
According to Asia Times, Simon Kim, chief executive of Hashed commented “I welcome this opportunity to collaborate with KB Bank so that South Korea can take the lead in the emerging market of digital assets.” He further commented that “Combining our insight in the blockchain industry and providing both technical and commercial consultations will inevitably open new doors to consumers as well as to the country in ushering the new era of digital transformation.”
In January, the government-owned bank filed its trademark application for digital assets custody with the Korean Intellectual Property Office. The trademark is called Kbdac. It covers more than 20 crypto-related areas.
In South Korea, the government, which has previously banned ICOs, in March amended the Reporting and Use of Specific Financial Information Act to recognize cryptocurrencies for the first time and recently classified them to be taxable.
According to a statement on August 7, KB Kookmin Bank said it predicts that the crypto industry will evolve beyond virtual currencies to include other traditional assets such as real estate and artwork that will be issued and traded on blockchain platforms.
Headquartered in Seoul, South Korea, KB Financial Group is Korea’s leading financial services provider offering a broad range of financial products and services. the KB Financial Group Inc is the largest bank in South Korea and manages close to US$408 billion in assets.
For more on China and Japan joining the global race for central bank digital currency (CBDC), go through Fyggex articles
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