NH NongHyup Bank, one of the major banking institutions in South Korea, announced forging a consortium for cryptocurrency services. The bank will partner with legal and cryptocurrency companies inside the country. NH Bank consortium focuses on jointly developing financial services based on blockchain technology and virtual assets.
NH Bank signed a partnership deal or MOU with the legal firm Bae, Kim & Lee on March. The other partner in that partnership deal is Hexlant, one of the leading cryptocurrency firms and blockchain laboratories in South Korea. Oh Yang-ho, senior partner of Bae, Kim & Lee, NH Nonghyup Bank Senior Vice President Jang Seung-hyun, and Hexlant CEO Noh Jin-woo signed the MOU for cooperation in the cryptocurrency industry on March 9 in Seoul.
The Korea Herald local media website announced the final decision from NH bank to forge their consortium.
“The bank has signed a memorandum of understanding with law firm Bae, Kim & Lee and Hexlant, a blockchain technology laboratory, to launch a joint institution for the research and development of cryptocurrency exchanges,” according to The Korea Herald.
The South Korea cabinet had a meeting in March 2020 and agreed on a vital bill for the digital currency industry. The Act on Report and Use of Specific Financial Transaction Information on virtual assets paved the way for banks and traditional financial institutions to work more closely with digital currency and cryptocurrency firms.
The bill focuses on the activity of cryptocurrency exchanges. It outlines their report system. Besides, crypto exchanges and all the other actors of the virtual assets’ ecosystem have to report their activities to financial authorities based on the new act.
“Through the consortium, we will step up efforts to take a lead in the local cryptocurrency industry,” said Jang Seung-hyun, senior vice president at NH NongHyup Bank.
The cooperation between traditional financial institutions like NH Bank with cryptocurrency and blockchain firms means a lot for the fintech and the DeFi industry in South Korea. The players will have more confidence in developing products and hope the significant names of the financial industry start working with them. The thing that now happens for Hexlant and means a lot for them considering the reputation and user-base growth.