One of the largest banking groups in South Korea namely Woori Financial Group has decided that it will start offering crypto custodial services to interested customers. For the purposes of ensuring crypto custodial services, Woori has become partners with Coinplug – a renowned blockchain company of South Korea. With Woori joining the crypto space, there are now at least three South Korean financial institutions providing crypto custodial services.
South Korean crypto space is one of the rapidly growing and expanding crypto spaces of the world. Almost half of the South Korean youth population are interested in cryptocurrencies and subsequently investing in crypto. In the meantime, keeping in view the public response towards crypto, the South Government wants to provide for friendly crypto regulation.
Similarly, the banking sector of South Korea is also becoming inclined towards cryptocurrencies. The majority of banks in South Korea are willingly facilitating their clients with regard to their local or foreign crypto trading transactions. Meanwhile, some of the banks have shown their willingness to render crypto trade services in the future. However, there are two major financial institutions of South Korea that have started off with crypto custodial services. These banks are known as Shinhan Bank and KB Kookmin Bank.
Now another major financial group of the country has joined the crypto space. This time is the Woori Financial Group which is one of the leading and largest banking institutions of South Korea. Woori has announced that it will very soon be providing crypto custodial services to its interested customers. For the smooth rendering of custodial services, the bank has already developed a partnership with a South Korean-based blockchain company called Coinplug.
Coinplug is currently the leading blockchain company working in South Korea whose patents are exceeding 300 plus.
While the country is known to have a crypto-friendly policy installed but there is one major problem with crypto. The problem is related to crypto exchanges. As per the laws of the country, South Korean investors are barred from using crypto exchanges’ services for custodial purposes. Instead, they are required to keep their crypto funds within their control and in their digital wallets. However, there is no restriction upon anyone to buy, sell or trade cryptocurrencies with any crypto exchange of his or her choice.
For this very reason, an opportunity has been created for the traditional banking sector to come within the crypto space. That is why the interest in rendering crypto custodial services is rapidly growing within the South Korean banking sector. So far three major banks of the country have offered custodial services.
However, the law restricts banks to render such crypto custodial services on their own. Instead, the banks are obligated under the law to enter into partnerships like the JV with blockchain-based companies for these services.