A couple of major commercial banks in South Korea have displayed their interest in launching crypto custody services – but industry specialists said they may be performing their moves too late and are straggling after the American banks.
As earlier announced, the two other commercial banks – Nonghyup and Kookmin – have proposed their investment in the crypto custody ring. The former said it expects to drive services for “intuitional investors” in the following months.
Through domestic media outlet Money Today, Woori and Shinhan have said that they are “considering introducing cryptoasset services” ahead of a new, probably game-changing crypto-specific legal reform that develops into strength in spring next year.
The progress is vital for Shinhan in particular. The bank has had to shelve aggressive crypto storage systems formed back in summer-fall 2017 after the government prompted to negotiate in what it called an “overheated” market in January 2018.
Shinhan had organized to build a network of ”crypto storage vaults” – a project it may now attempt to re-explore with banks now relatively bullish about their chances of at least provisioning to the demands of expert investors with interest in crypto.
Despite this, blockchain experts have hinted that it may be “too little, too late” for South Korean banks, with American counterparts already stealing a march in the crypto custody stakes.
The media outlet advised that without “institutional support,” South Korean banks’ crypto custody drives may fall flat. Money Today cites Park Sung-Joon, head of the Blockchain Research Center at Dongguk University – and one of the nation’s leading blockchain specialists – as stating,
“Other countries are moving very quickly in this regard. But there is yet no legal system in place in South Korea, so advancement is hindered than anticipated.”
Park added that “competitiveness” could be weakened by a lack of a legal framework to support banks’ tentative steps into the world of crypto custody.
Industry insiders have earlier declared that banks are “sitting on” far more complete crypto business expansion projects, but are now “biding their time.” At the same time, they wait for government policy to loosen all things crypto-related before going public.