The second largest South Korean commercial bank Shinhan, in terms of consumer base and market valuation has started with a testing phase of its Bitcoin wallet and Bitcoin vault services.

A Shinhan representative recently told Naver News which is a South Korean media outlet operated by one of its most popular search engine that the corporate decision was taken up by the bank for launching a wallet and vault platform. This launch is targeted to secure investors from the hacking and money laundering associated with cryptocurrencies. Very recently a major South Korean crypto exchange known as Bithumb had fallen prey to the malicious attack of hackers in June causing investors to lose millions of funds. This security breach had affected about 30,000 users compelling the bank to refund funds worth $1 million and an extra $1 million as a compensation for the hacking attack experienced.

A Shinhan representative gave an official statement to Naver stating that:

“Shinhan is testing a virtual bitcoin vault platform wherein the private keys of bitcoin addresses and wallets are managed and issued by the bank. The bank intends to provide the vault service for free and charge a fee for withdrawals.”

Also Read: Bitcoin Is a Commodity and not a Currency, says Chief of Central Bank of South Korea

Shinhan serves about tens of thousands of South Korean corporations and millions of active users. This has made the integration of the Bitcoin wallet and vault platform all the more necessary with the existing Shinhan banking infrastructure. The next step shall be the introduction of Bitcoin for being used by general consumers spread across the South Korean boundary. Such mainstream Bitcoin exposure shall surely bring in positive results by propelling the crypto adoption rate in the South Korean territory.

Shinhan plans to launch its Bitcoin wallet and vault platform by middle 2018 thus becoming the first large scale regulated commercial bank which provides wallet and vault service. There is considerable doubt regarding whether Shinhan shall offer trading services and bitcoin brokerage for enabling its exiting customers and clients to transact in Bitcoin. Market experts are hopeful that Shinhan will establish a partnership with crypto exchanges spread across South Korea like Coinone, Bithumb and Korbit for bringing upon liquidity in its client base. Choe Heung-sik, the head of South Korean Financial Supervisory Service (FSS), announced that strict regulations shall not be imposed by the South Korean government on the exchanges in foreseeable future. He was quoted as saying,

“Though we are monitoring the practice of cryptocurrency trading, we don’t have plans right now to directly supervise exchanges. Supervision will come only after the legal recognition of digital tokens as a legitimate currency,”

The adoption and integration of Bitcoin by the second largest bank of South Korea would pave the path for Bitcoin legalisation in the country. Once the integration drill is completed, there is a big chance of the South Korean government to usher in Bitcoin regulation in line with another pro-Bitcoin nation – Japan.

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Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.