Woori Woori Financial Group in South Korea reveals its plan to introduce digital assets custody facilities. A piece of news came into existence on 12 to July 2021 that “South Korea’s fourth-largest bank to offer crypto custody services”.

The bank is introducing a digital asset custody firm termed D- custody. The deal is finalized between Woori Woori and Coinplug.

Permission granted for companies

Woori Bank and Coinplug incorporated a unique project. Certain restrictions need to be followed. The restriction is for domestic companies. Korean law suggests not joining the cryptocurrency exchange for domestic companies. This simply means that through shareholdings and joint ventures they can participate in the crypto market.

Domestic banks are prohibited to join the cryptocurrency custody business directly. The international market has grabbed the profitable business of cryptocurrency custody. The new concept of cryptocurrency custody provided by banks came into existence.

Other banks following the service

Kookmin Bank, Shinhan Bank, NH Nonghyup Bank, and Woori Bank are the four top banks that started the service of crypto custody facilities in August 2020. The largest bank has submitted trademark applications for custodial services. Kookmin Bank partnered with Hashed and domestic blockchain startup company Haechi labs.

Nonghyup Bank intended to establish a custodial firm with Korean information and communication. In June 2020 this bank partnered with blockchain firm Hexlant. Shinhan bank secured its take in Korea’s digital asset trust.

The Korean bank will gain profit with this service. The plan will give them a new turn in the crypto market. Not only Korea Japan and Switzerland are also offering Digital assets custody services. The financial risk in the crypto market is also one of the problems.

Vandana Mrigwani

CBW - External Analyst

INDIA