Multiple South Korean banks could launch cryptocurrency custody services by the end of 2020 or March next year "at the latest," after a "significant shift in tone" has prompted the banking sector to move into the crypto business with alacrity.
According to a report by the Electronic Times, custody of cryptocurrencies is now a key priority for South Korean banks, which says it has traditionally "been cautious in the cryptocurrency business."
The post quotes an anonymous banking official who claims:
“I know that several commercial banks plan to launch cryptocurrency custody services before the end of the year. Although there are differences in the schedules, other banks will launch services before March 2021 at the latest ”.
The media outlet says there has been a radical shift in domestic politics, prompting several banks to make their plans public lately. The first bank to announce its intentions was Nonghyup, which says it will soon begin offering cryptocurrency custody services to institutional investors.
Since then, Kookmin has followed suit, with reports from last week indicating that rivals Shinhan and Woori they were also interested.
But the Electronic Times report claims that recent events have accelerated the change in attitude: that is, a legal amendment that will soon be implemented that will create a regulatory framework in the cryptocurrency sector.
Events abroad have also been a factor.
A July ruling by the US Office of the Comptroller of the Currency (OCC) allowing banks to participate in cryptocurrency custody also appears to have galvanized South Korean banks, who believe that Seoul-based regulators will align themselves with their counterparts. Americans.
An unnamed industry insider told the publication that other banks are currently in the consultation stage on how and when to launch their own cryptocurrency custody operations.