South Korea’s Hana Bank, a major commercial bank in the country, has partnered with BitGo, a decade-old crypto custody business, to develop the bank’s digital asset custody services to commence in the second half of next year, Forkast reported.
The duo announced the partnership today at Korea Blockchain Week in Seoul, according to a Korea Economic Daily report.
As part of the partnership, Hana Bank and California-based BitGo plan to explore the possibility of setting up a joint venture to tap the bank’s experience in financial services and compliance, as well as Bitgo’s crypto security expertise.
A Hana Bank representative told the Daily that it hopes to raise trust and contribute to consumer protection in the domestic digital asset market through the partnership.
BitGo’s partnership with Hana Bank aligns with its global expansion strategy after it secured $100 million in Series C financing at a $1.75 billion valuation last month. The company plans to use the proceeds for strategic acquisitions and global expansion, The Block previously reported.
BitGo plans to launch an office in South Korea late next year when it gets its paperwork ready for local compliance, according to Forkast.
In June, South Korean lawmakers passed legislation to better protect crypto investors. The new legislation, comprised of 19 crypto-related bills, gives the Financial Services Commission and the Bank of Korea the authority to oversee crypto operators and asset custodians. The new bill also allows authorities to enforce penalties in cases of unfair trading of virtual assets.
In July, the FSC said it would require domestic companies to disclose cryptocurrency holdings from next year as part of new accounting rules. The new rules will also require crypto issuers to disclose information, including token details, business models and internal accounting policies.
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