One of South Korea’s prominent banks, Hana Bank, announced a strategic business agreement with global digital asset custodian BitGo. Local media reported the partnership statement during the “Korea Blockchain Week” (KBW) conference.
Meanwhile, the partnership aims to strengthen trust in the domestic digital asset market and enhance consumer protection.
BitGo South Korea Partnership to Build Domestic Digital Market
Hana Bank entered the digital asset custody partnership through a strategic agreement with BitGo. The two companies will reportedly explore joint equity investment for a potential joint venture corporation.
Notably, the collaboration will leverage BitGo’s security solutions and digital asset custody technology. Hana Bank will provide financial service expertise, security, and compliance capabilities.
A representative from Hana Bank told the paper,
“We are expected to contribute to strengthening trust and consumer protection in the domestic digital asset market by promoting digital asset custody business together with global partners.”
Mike Belsey, CEO and co-founder of BitGo, also emphasized their commitment to improving transparency and safety within the Korean digital asset industry through the partnership.
Increased Rules for the Crypto Market
The announcement comes amid increased regulatory measures in South Korea. The Korea Federation of Banks is set to mandate that cryptocurrency exchanges with real-name accounts maintain a minimum reserve fund.
These requirements will apply to exchanges facilitating transactions between the Korean won and cryptocurrencies starting in September.
Furthermore, South Korea has intensified its efforts to curb North Korea’s use of cryptocurrencies to fund illicit weapons programs. President Yoon Suk Yeol recently announced plans for a new bill targeting North Korean virtual assets.
The bill includes specific strategies to “track and neutralize” cryptocurrencies stolen by North Korea through cyberattacks, aligning with the president’s call to bolster national security.
In July, South Korean financial authorities also signaled their intent to regulate distributed ledgers legally. They announced implementing investor protection measures through an amendment to the Token Securities Offering (STO) bill.
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