Another two banks in South Korea are considering crypto custody services.
Woori and Shinhan banks in South Korea are joining others in the crypto industry to offer services soon. With this development, four out of the best five banks in South Korea will soon be involved. The assets of these banks have a value of over $1.2 trillion.
The four banks want to engage in crypto custody services. Shinhan and Woori’s interests seems to have been sparked by the modification made on the Special Financial Transactions Information Act. Everything about the modification will become effective from 2021.
Actually, Shinhan’s dreams for crypto custodial services did not begin today. It planned to be involved in 2017 but government rules in 2018 aborted the plan.
The first two of the top five banks that announced their plans to get involved are the NH Nonghyup Bank and Kookmin Bank. They have gone a long way in implementing strategies to make sure this works. The NH Nonghyup bank appears to be more sophisticated and ready to kick off and it even professes its readiness to serve institutional investors in a few months.
Slow pace, little achievement
However, Blockchain professionals in South Korea are not happy with the pace of response from the banks in the country though they know the fault isn’t entirely theirs.. Comparing the rate of development with what is obtainable in the U.S., they believe there is more work to do in South Korea concerning blockchain. Park Sung-joon who heads Dongguk University’s Blockchain Research Center said:
“Other countries are moving very quickly in this regard. But there is still no legal system in place in South Korea, so progress is slower than expected.”
He is of the opinion that various institutions should take some responsibility towards ensuring that crypto custody services in South Korea comes to stay.
Korea for crypto
Although South Korea may not be the best in adopting Blockchain solutions in various aspects, there are still some laudable projects in the country. For instance, in just three months, over 1 million people have said yes to the blockchain drivers license. Also, there are plans to start collecting toll fees with the application of blockchain technology.