Major South Korean bank will start offering crypto services as the government passes new regulation
Updated: Mar 29
One of the largest banks in South Korea, KB Kookmin Bank, is ready to launch a range of crypto services, including trading, financial reporting, asset management, consulting, advisory, over-the-counter brokerage, and custody. The bank has filed a registration utility to trademark “KBDAC", however, given that over 20 crypto services are listed on this application, it may take from six months and two years to finalize the trademark registration in South Korea.
Since June 2019, KB Kookmin Bank has been partnering with a blockchain company Atomrigs Lab Inc. though, at the same time, the monetary establishment has also been actively researching other possible potentials of blockchain technology.
KB Kookmin Bank’s plans go along with the passing of an amendment to the Act on Reporting and Using Specified Financial Transaction Information. The South Korean National Assembly has finally given the green light to cryptocurrency and related service providers. Previously, the government had only issued guidelines but there was no actual law in place. “Cryptocurrency now fully legal in South Korea,” The News Asia publication says:
"The passing of the amendment signifies the official entry of cryptocurrency trading and holding into the legal system for the South Korean government."
According to the revised bill, all crypto exchanges will be obliged to use the real-name system by collaborating with a financial institution providing such service. Banks must perform regular audits on crypto businesses they deal with and respectively will be committed to properly report to the Korea Financial Intelligence Unit (KOFIU).
“Real-name accounts prevent money laundering by assigning a verified individual to a single bank account with which they may withdraw and deposit fiat currency from and to an exchange. <...> Up until now, anyone could launch a cryptocurrency exchange in South Korea. By September 2019, there were over 70 exchanges in the country", The News Asia explained.
In the meantime, the country's Ministry of Economy and Finance is doing its best to keep up the pace and is urging to amend the tax code to allow the taxation of cryptocurrency, as under the current tax law in South Korea the individuals’ crypto profits are not taxable.