The first financial institution in Korea, Shinhan Bank, has announced it will enter the cryptocurrency market with a strategic investment in Korea Digital Asset Trust, a cryptocurrency custodian consortium established by Korbit, the original Korean cryptocurrency exchange, the Yonhap News Agency has learned.
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While the size of investments remains undisclosed, Shinhan Bank Chairman and Chief Executive Yong-Byung Cho says cryptocurrency custodian is an area where one can make a good use of the bank's compliance capabilities and custody services.
"We will secure competitiveness in study services and proactively respond to the rapidly changing digital asset market due to the implementation of the Special Financial Information Act," Cho added.
South Korea earlier also postponed a 20% taxation of the cryptocurrency market to 2022 so that crypto-focused companies will be able to prepare the infrastructure for the taxation. Hence, starting from 2022, if a person earns over 2.5 million South Korean won (~$2,500) per year with cryptocurrencies such as bitcoin, he should pay a 20% tax from this amount.
In August 2018, Shinhan Bank entered into a deal with telecommunications enterprise KT. Under the new agreement, Shinhan Bank and KT jointly established a blockchain platform to capitalize on regional governments' moves to introduce digital vouchers. Telecommunications company was responsible for developing the platform, and the bank integrated financial instruments into the platform.
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