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S.Korea’s Shinhan Securities plans on hoped-for crypto expansion

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Shinhan Securities Co., Ltd., a major South Korean brokerage firm, is preparing to launch a digital asset valuation service, according to local news outlets. digital todayis Shinhan’s latest effort to incorporate blockchain and crypto into its services.

The company recently supported a digital asset rating business JV (joint venture), developed smart contracts and crypto trading systems, and hired new blockchain teams such as Non-Fungible Tokens (NFTs) and Metaverse. Shinhan wrote in the job posting.

However, Shinhan said that its crypto business is unlikely to start anytime soon. “We don’t have a specific business plan to promote anything. [crypto] We are still studying and researching the industry and technology,” said a spokesperson for Shinhan Securities’ public relations team. Forst.

This is while South Korean law restricts local banks and financial institutions from pursuing businesses other than traditional finance and restricts them from owning more than 15% of companies in the non-financial sector. happen.

See related articles: South Korean Banks Seek Green Light for Cryptocurrencies

However, Shinhan seems to be preparing for the day when South Korea will ease these restrictions.

The Financial Services Commission (FSC), the country’s premier financial regulator, Announced in July This year, we are promoting “bold reform” of financial regulations in line with the global movement of digital transformation. One topic being debated among regulators is whether to allow financial firms to invest in cryptocurrencies or pursue cryptocurrency-related businesses.

Prior to its recent adoption, Shinhan Securities has been active in its forays into blockchain and cryptocurrencies.

Over the summer, the brokerage partnered with blockchain-based fintech firm Delio to develop products and services based on blockchain technology. Earlier this month, the company announced a partnership with blockchain technology firm Superblock to help Shinhan internalize the technology needed to pursue a digital asset business.

Shinhan Financial Group’s banking subsidiary, which posted the highest net profit for a financial company in Q3 2022, is also heavily involved in blockchain.

See related articles: Terra-LUNA scarred South Korea pushes digital asset reform

Last year, Shinhan Group’s banking subsidiary conducted a demonstration of real-time international money transfers via stablecoins between South Africa’s Standard Bank and blockchain network Hedera Hashgraph.

Shinhan Bank has invested in KDAC (Korea Digital Asset Custody), an industry consortium that provides cryptocurrency custody services. The bank has also partnered with Korbit, one of South Korea’s five largest cryptocurrency exchanges, to offer users real-name deposit and withdrawal accounts for transparent trading.

South Korea as a country is moving towards a more positive outlook on cryptocurrencies. We are currently developing a new crypto regulatory framework called the Digital Asset Basic Law. This is expected to institutionalize cryptocurrencies and create a safer trading environment for investors.

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