South Korea’s NH Bank Dives into the Blockchain Financial Services Sector
South Korea’s NH NongHyup bank, has revealed that it signed a memorandum of understanding to research and generate blockchain-based financial services by a new association. A report revealed this news on June 10, writing that the bank joined hands with a local law firm and a blockchain laboratory to build digital asset-based financial services.
As per the publication, the MoU will mark the bank work with a law firm recognized as Bae, Kim & Lee alongside Hexlant, a blockchain developer. This consortium reportedly attempts to research and develop crypto exchanges.
South Korea’s crypto exchange permitting system
This news comes three months after South Korea’s legislature passed a law to interject a permitting system for exchanges that work in the country. Reportedly, this system leverages the real-name confirmed bank accounts to decide whether an exchange is fit to provide its services to South Korean citizens.
As such, exchanges in the country will have to report their operations to the FIU (Financial Intelligence Unit) after obtaining real-name confirmed accounts from commercial banks. To ensure compliance, the law states that failure to report operations could warrant up to five years in prison or fines of up to £33,000.
As per NH NongHyup bank, this law provides a unique opportunity to onboard the South Korean crypto sector and take a key position. Developing this, the senior vice president at NH NongHyup bank, Jang Seung-hyun said in a statement, “Through the consortium, we will step up efforts to take the lead in the local cryptocurrency industry,”
NH bank’s increasing interest in the blockchain sector
While this move is the first direct effort to improve its blockchain-based financial services, NH NongHyup has been involved in the blockchain space for quite a while now. The bank joined the R3 blockchain consortium in December 2017. The bank specialized in agricultural and commercial credit and banking services and combined a blockchain-based mobile identification system developed by Samsung into its staff IDs.