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South Korean banks are looking to expand their crypto custody offerings – as competition in the industry begins to intensify.

So far, only a small handful of banks have agreed to work with crypto exchanges, offering their clients real-name banking services, with the majority ruling out the notion of working with trading platforms “for the time being.” But it seems banks are much more comfortable with the idea of ​​helping exchanges store their clients’ fiat and crypto.

According to Asia Kyungjae, some of South Korea’s biggest banking players have been looking for indirect ways to get into the crypto custodial game, as existing banking laws prevent traditional financial institutions from managing cryptoassets. But the banks were able to avoid this by creating joint ventures or by carrying out mergers and acquisitions.

Here’s a breakdown of some of the most recent crypto custody moves from the biggest banks.

NongHyup (NH Bank)

Asia Kyungjae noted that NH was “the most active player in the conservation business” and that over the past few days it had made a “strategic equity investment” in a conservation specialist named Cardo. The latter “is currently preparing the launch” of a new service and seeks to strengthen its credibility by “obtaining an information security management system certification” from an issuing government body. It also plans to roll out KRW digital childcare offers.

Kookmin (KB Bank)

KB has entered into an agreement with Haechi Laboratories and Chopped in November last year to co-launch the Korea Digital Asset (KODA) joint venture, becoming the industry’s first bank to provide digital asset custody services. It has attracted a number of prominent clients in the period since its inception, including crypto gaming giant-keen We have done.

Shinhan

Shinhan also made “a strategic equity investment” in the Korea digital asset trust (KDAC), a “digital asset management company”. He also has some notable clients, such as NXC, the holding of the gaming giant Nexon, which also holds the Bitstamp and Korbit Exchanges. Alpha Asset Management is also a client.

Woori

Woori has teamed up with the fast growing blockchain and crypto player Coinplug to co-launch a crypto custodial company named Decustody.

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The outlet also noted that in addition to crypto-assets such as bitcoin (BTC), banks are looking to expand their custody services to non-fungible tokens (NFTs) and security token offerings (STOs).

An industry insider explained that crypto custody does not require banks to perform money laundering checks, which means that “from the bank’s point of view,” the custody is “less onerous” than to offer banking services for exchanges, ”adding that custody could“ generate new commission income ”for banks.

The insider added that it is also “offering” banks “an opportunity” to enter a sector in which they have been looking for a path for some time.

As previously reported, a national banking think tank recently recommended that banks actively pursue activities related to crypto custody.

Meanwhile, a South Korean university said it was trying to create a set of legal standards for the crypto industry that could be applied in the Northeast Asian region.

NoCut News reported that the effort is being led by JeonBuk National UniversityThe Northeast Asian Law Research Institute, which will “examine national and international cryptocurrency trends and present standardization standards for various legal areas” – later seeking to “and” export the right ”to the entire Northeast Asian region.
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Learn more:
– Think Tank tells South Korean banks: start offering crypto safekeeping
– Security firm develops ‘crypto bunker’ that would make Bond villain blush

– Germany’s largest bank has spoken, now it is walking the crypto Walk
– The manufacturer rises as Société Générale requests a loan backed by bond tokens


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