In a futuristic approach, the prominent South Korean financial institution, KEB Hana Bank, announced a partnership with California’s BitGo, a front-runner in cryptocurrency custody and security. This liaison aims to provide digital asset custody services to clients from the latter part of 2024; a surprising move considering the industry skepticism towards regulations.
A regular at the Korea Blockchain Week conference in Seoul, Hana Bank unveiled its current CBDC pilot project which involves working closely with the Central Bank of Korea (BOK) on stablecoin alternatives; a collaboration emphasizing the potentials of blockchain security technology. Consequently, the relationship with BitGo is expected to elevate the quality of Hana Bank’s digital assets custody operations.
The partnership could indeed usher in a new era of trust and consumer protection for South Korea’s digital asset market. With BitGo’s decision to establish a South Korean corporation, it stands to reason that the giant can now broaden its existing clientele spanning more than 50 countries.
BitGo’s commanding presence built on solid blockchain security technology safeguards the integrity of digital assets; a fact backed up by its CEO and co-founder, Mike Belshe. During a recent event, Belshe affirmed that the collaboration would use BitGo’s full capacity to heighten the transparency and safety of South Korea’s digital asset industry. His trust is not misplaced considering BitGo recently secured funding of $100 million, pushing its valuation to $1.75 billion.
Surprisingly, the robust regulatory landscape of South Korea has welcomed these new alliances with open arms. In July, South Korean financial authorities undertook to legally regulate blockchain-based security tokens through the Token Securities Offering (STO) bill amendment; it is an attempt to elevate investor protection measures in the face of market fragility—most notable, the countryman Do Kwon token implosion that triggered the $2 trillion crypto-market rout.
Besides, the South Korean National Assembly stamped approval on the Virtual Asset User Protection Act, enabling the Financial Services Commission oversight of crypto operators and asset custodians. This law further requires crypto companies in South Korea to insure their reserves, protecting customers from possible loss of virtual assets due to theft or technological failure. This move has led to various entrants such as BitGo finding a firm footing in South Korea.
However, it’s the future that holds the verdict on whether this escalating regulatory rush will hinder or expedite the growth of crypto startups in South Korea.
Source: Cryptonews
