Major South Korean Bank Prepares to Launch Crypto Services as Government Green-Lights Regulation
Following the approval of a regulatory framework for cryptocurrencies by the South Korean government, one of the largest banks in the country is preparing to launch a range of crypto services. KB Kookmin Bank has applied for trademark registration, reportedly listing over 20 crypto services on its application.
KB Kookmin Bank Registers Trademark for a Wide Range of Crypto Services
One of the largest banks in South Korea, KB Kookmin Bank has filed a registration application to trademark “KBDAC.” Local news outlet Digital Today reported on Friday that the bank listed over 20 crypto services on its application, adding that trademark registration can take between six months and two years in South Korea.
The bank’s filing with the Korean Intellectual Property Office dated Jan. 31 details a number of crypto services, including trading, financial reporting, asset management, consulting, advisory, over-the-counter brokerage, and custody.
A KB Kookmin Bank official explained that KBDAC is related to the bank’s collaboration with blockchain company Atomrigs Lab Inc., announced in June last year, the publication conveyed. However, the official did not reveal the service launch date. Meanwhile, the bank has also been actively exploring various use cases of blockchain technology.
South Korea Approves Crypto Regulation
KB Kookmin Bank’s move coincides with the passing of a revision to the Act on Reporting and Using Specified Financial Transaction Information. This bill, introduced in November last year, passed the National Assembly on March 5 and the South Korean government approved its revision on March 17.
Under the new law, South Korean cryptocurrency exchanges must use the real-name system by partnering with a financial institution that can provide this service. Banks will be obligated to conduct customer due diligence on the crypto businesses they deal with, ensuring proper reporting to the Korea Financial Intelligence Unit (KOFIU).
“The revision bill will take effect one year after promulgation, and the current crypto-asset business operators will be given a six-month transition period to report to the KOFIU,” South Korea’s top financial regulator, the Financial Services Agency, explained. “This revision act will place Korea’s legal framework on crypto assets more in line with international standards set forth by the Financial Action Task Force (FATF) and strengthen its AML/CFT regime.”
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