With crypto custody becoming an in-demand service owing to growing crypto adoption globally, KB KooKmin Bank is set to join the bandwagon already providing the service to crypto users.
KB KooKmin Bank began its trademark application for digital assets custody with the Korean Intellectual Property Office since January, covering over 20 crypto-related areas.
The bank predicts that cryptocurrencies would evolve beyond virtual currencies and traditional assets like landed properties and artworks to be traded on blockchain platform.
KB Kookmin Bank, the largest commercial bank in Korea to provide the crypto custody service, would partner blockchain venture fund, Hashed, and crypto trading platform, Cumberland Korea. The partnership is to establish strategic technology cooperation for the crypto custody business.
Behinde KB Kookmin Bank crypto custody service,
The largest commercial bank in Korea’s crypto custody service announcement comes after a major rival in the country, NH Bank (NongHyup), announced in June that they would be offering crypto custody service as well. NH, however, said they would only be focusing on institutional investors.
KB Kookmin Bank crypto custody partners, however, revealed they came into the crypto industry as a response to regulatory changes. The regulatory changes made them search for new business models that rely on blockchain technology.
Hashed CEO, Simon Kim said that their insight in the blockchain industry and technical, commercial consultations would open new doors to consumers in ushering the new era of digital transformation.
Banks now getting green light to disrupt crypto space
Amidst KB Kookmin Bank crypto custody service announcement, Banks are beginning to get a go-ahead from regulators to enter the crypto space. In the US, for example, local banks got the nod to manage and store digital assets on behalf of their customers.
In South Korea likewise, after the government placed a ban on ICO’s earlier this year, they began amending Reporting and Use of Specific Financial Information Act to recognize cryptocurrencies and now classify these assets as taxable.