Leading bank in South Korea KB Kookmin Bank has entered into cryptocurrency and blockchain world by joining hands with blockchain firm Hashed, crypto trading company Cumberland Korea and Haechi Labs. The purpose of the partnership between four companies is to innovate the digital assets industry in South Korea.
Their combined effort will try to set a regulatory framework for crypto assets, the transformation of the finance industry, and to create a friendly environment for the management and storage of digital assets.
Banks are now Accepting Cryptocurrency Potential
South Korean banks are inspired by the banks of other countries that are accepting cryptocurrency and blockchain technology. Recently, the US watchdog for banks Office of the Comptroller of the Currency permitted banks to offer crypto custody services. China is close to rolling out its central bank digital currency (CBDC), while Japan is also considering the creation of CBDC.
South Korea changed things in law in March 2020 and first time accepted digital assets and its potential. After then, the four major banks of South Korea have proposed their respective plans for digital assets. Jin Kang, the Legal and Compliance Officer at Hashed, wrote:
“KB Kookmin Bank, the largest bank of the four, anticipates that the digital asset industry will not only involve cryptocurrencies, but also other traditional assets such as real estate, artwork, and other reified rights that will be issued and traded on blockchain platforms. The partnership, therefore, beckons a start of a long journey in building the necessary technology stack.”
New Era of Digital Transformation
Simon Kim, CEO of Hashed says that the company will provide both commercial and technical consultations to pave a path for the new era of digital transformation. Kim said:
“I welcome this opportunity to collaborate with KB Bank so that South Korea can take the lead in the emerging market of digital assets. Combining our insight in the blockchain industry and providing both technical and commercial consultations will inevitably open new doors to consumers as well as to the country in ushering the new era of digital transformation.”