Shinhan Bank became South Korea’s first domestic lender to trial real-name corporate accounts for cash-to-crypto transactions, paving the way for an institutional crypto boom in the peninsula.
See related article: South Korean banks find workaround to cash in on crypto services
Fast facts
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Local regulations permit only licensed and bank-partnered crypto exchanges to offer cash-to-crypto services in South Korea.
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Businesses under Shinhan’s corporate account trials can invest in cryptocurrencies through the bank’s partner exchange Korbit.
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Banks have been steering clear of opening crypto trading accounts for corporates due to money laundering concerns, citing difficulties in identifying proxy investments from firms.
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The bank said it eliminates such risks by mandating businesses entrust crypto in the Shinhan-backed custody service KDAC (Korea Digital Asset Custody).
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Corporations selected by the bank for the trial run are members of KDAC.
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In South Korea, there are 4,426 corporate investors trading in crypto-to-crypto exchanges after acquiring assets overseas or via P2P trades, according to the Financial Services Commission.
See related article: South Korean banks seek green light on crypto