South Korean Bank Shinhan Launches Nation’s First Corporate Crypto-Fiat Account
The South Korean commercial banking giant Shinhan has become the first bank in the nation to offer crypto account services to a corporate client.
ZDNet Korea reported that on April 7, the bank created a corporate fiat KRW account exclusively for cryptoasset transactions to the crypto exchange Korbit.
Shinhan’s Korbit connections are continuing to deepen. The bank is reportedly on the verge of finalizing a deal to buy some 20% of the crypto trading platform, South Korea’s first and one of its biggest. The bank also provides customer fiat on/off ramps for Korbit in the form of real-name banking services.
Under South Korean law, corporations were previously not allowed to make direct cryptoasset investments via banks, and were forced to buy and sell assets using overseas subsidiaries. However, a legal change late last year allowed banks to begin offering such services.
The Shinhan move will essentially allow Korbit to make crypto purchases in KRW using its account without the need to deal with cross-border workarounds.
But the move will likely have more significance for companies outside the crypto sphere. Like Tesla in the United States, South Korean firms are thought to be keen to add cryptoassets to their balance sheets. But without specialized banking services that facilitate KRW-crypto purchases, experts told the media outlet, they have been very reluctant to do so.
An unnamed industry insider said the move would likely “result in an increase in liquidity.”
The Korea Blockchain Industry Association was quoted as stating:
“Global enterprises are boosting growth by moving into and investing in cryptoasset markets. Examples of this include PayPal and Tesla. This is an international trend, and South Korean companies need to
Read more on cryptonews.com
