Nowadays in Korea, a lot of individuals and big firms are investing in cryptocurrency. Now, to prevent theft or loss of these digital assets, there is a need for digital asset management solution providers that will hold the private keys on behalf of individuals and organizations for maximal security.
Ordinarily, Korean—like everyone else—should have made use of their respective cryptocurrency exchanges. However, the Korean government has forbidden “domestic entities” from doing such.
On the other hand, they cannot use banks to store and manage their cryptocurrencies as there is a regulation that binds banks from engaging in digital asset custody services.
Now, a more ingenuous legal approach is for banks to partner with DACS providers. Something which Woori Bank and Coinplug has just done. According to The Korea Economic Daily, Woori Financial Group entered into a Joint Venture partnership with Coinplug yesterday. The name of the Joint Venture is D-Venture.
Woori is a Seoul-based multinational bank and one of the largest banks in South Korea. On the other hand, Coinplug is a Korean blockchain developing company that provides blockchain infrastructure for banks and corporate firms.
Now, Koreans that bank with Woori will start to enjoy access to digital asset custody services.
This is a remarkable progress as two other banks, KB Bank and Shinhan Bank, have earlier started to offer DACS services in conjunction with some service providers. There is a higher likelihood that more Korean banks will make similar moves in the future.