The largest bank in South Korea, KEB Hana Bank, has agreed to a strategic partnership with BitGo, a California-based crypto custody and security platform, to start providing digital asset custody (DAC) services to its customers in the coming year.

The partnership was revealed during the Seoul-based Korea Blockchain Week conference.

Hana Bank a prominent South Korean financial institution will reportedly use BitGo’s blockchain security technology for its digital asset custody operations. Hana Bank recently announced its collaboration with the Central Bank of Korea (BOK) on CBDC pilot and stablecoin alternatives. The rollout of the services is anticipated during the second half of 2024.

By developing the DAC sector with our international partners, the Bank anticipates helping to increase consumer protection and boost trust in the domestic digital asset market, according to Hana Bank sources.

Following the decision by BitGo to establish a firm in South Korea, both parties will jointly enter the DAC market. One of the top cryptocurrency custodians, BitGo, currently provides service to over 50 nations. The business intends to establish a presence in South Korea. This is feasible once the firm gets the necessary licenses from local regulations.

Due to the collaboration, BitGo will be able to realize all of its potential. According to the CEO and co-founder of BitGo, this will improve both the transparency and safety of the South Korean-based digital asset industry. During the occasion, Mike Belshe made the announcement.

By amending the Token Securities Offering (STO) statute, the South Korean financial authorities declared in July that they would formally regulate security tokens powered by blockchain and implement safeguards to protect investors.

A year after the collapse of tokens produced by fellow countryman Do Kwon, which exacerbated a $2 trillion crypto-market collapse, a standalone bill on digital assets was introduced to strengthen investor safety.

The Virtual Asset User Protection Act was approved by the South Korean National Assembly on June 30, providing the Financial Services Commission authority to regulate both crypto operators and asset custodians. Such platforms could potentially be investigated by the Korean Bank

The law also stipulated that South Korean cryptocurrency businesses would need to insure their reserves to shield clients from the loss of virtual assets due to theft or technical breakdown.

Numerous cryptocurrency businesses and exchanges, like BitGo, now have options to set up shop in South Korea thanks to the rush to regulate digital assets and services.