The First South Korean Bank Opens Cryptocurrency Accounts For Corporations

Shinhan Bank has become the first domestic bank in South Korea to pilot real-name corporate accounts for crypto transactions, paving the way for institutional investors. Local regulations only allow licensed and partner crypto exchanges of banks to offer cash-to-cryptocurrency exchange services in South Korea.

Businesses under Shinhan’s corporate account trials can invest in cryptocurrencies through the bank’s partner exchange Korbit. Banks have refrained from opening crypto trading accounts for corporations due to money laundering concerns, citing difficulties in identifying proxy investments from firms.

The bank said it eliminates such risks by instructing businesses to entrust cryptocurrencies to a custodial service backed by Shinhan, KDAC (Korea Digital Asset Custody). The corporations selected by the bank for the trial run are members of the KDAC.

Image: Business Korea