The services that KB Kookmin Bank will offer to its customers include Bitcoin and other digital currencies.
KB Kookmin Bank (KB), the largest bank in South Korea, announced its intention to offer Bitcoin custody services to its customers. It is now on the side of the new form of money.
The financial institution itself stated that it had signed a contract with the blockchain company Hashed and the Cumberland Korea exchange.
With this new agreement, the main cryptocurrency takes a new step towards its consolidation as a safe haven asset. Currently, dozens of US institutional investors are buying Bitcoin in large quantities.
State Bank Offers Bitcoin Custody Services
This financial institution belongs to the state of South Korea. Likewise, the bank applied with the corresponding entities last January to operate with crypto assets.
Under the brand name KBDAC, the institution will cover more than 20 areas related to cryptocurrencies. Bitcoin will be among these services, which the aforementioned largest bank in South Korea will offer.
On the other hand, the institution stated last August 7th that they will not limit themselves to the use of cryptocurrencies. Besides, they explained that they will evolve into the field of real estate and works of art. They plan to issue and trade all of them through the blockchain platform.
Part of a Competition
This move towards new technology by KB responds to the plans of competitors. Rival bank NH Bank announced that it would also offer cryptocurrency custody services, which will focus on corporate services.
In this way, Bitcoin is now becoming present among Korean banks; it is one of the services that they offer. These institutions are reforming some limitations that existed around the use of cryptocurrencies in that Asian nation.
Simon Kim, CEO of Hashed, the firm with which KB partnered, reportedly stated that this is a sign of the transformation that is taking place in the world of finance.
Concerning the combination of their knowledge in the blockchain industry and the provision of technical and business consultations, he asserted that this will inevitably open new doors for consumers and the country to start the new era of digital transformation.
Echo of the United States
This South Korean bank decided to incorporate Bitcoin among the services that it offers to its customers. However, it did so after a major announcement in the United States about the role of banking in the world of cryptocurrencies.
The Office of the Comptroller of Currencies gave the go-ahead to local banks to trade cryptocurrencies. Banks will now be able to store and manage cryptocurrencies on behalf of their users.
Getting modern regulation on cryptocurrencies is one of the top priorities of the crypto community. For example, the New York State Department of Financial Services has recently authorized New York banks to take into custody and operate with various cryptocurrencies.
Seoul had previously banned initial coin offerings (ICO), but amended in March, lifting that prohibition on these digital products. In that way, the State gave cryptocurrencies official recognition as exchange goods.
By Alexander Salazar
