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South Korea's major commercial bank Shinhan Bank will launch a bitcoin hosting service

Shinhan Bank, Korea's second-largest bank in terms of market capitalization and user base, has begun testing its bitcoin vault and wallet services. This is not the first time this bank has introduced Bitcoin-related services. In December last year, Shinhan Bank has launched a Bitcoin remittance service between South Korea and China .

Reasons to launch a bitcoin hosting service

In an interview, a representative of Shinhan Bank said in an interview that the bank has decided to launch a bitcoin vault and wallet platform in response to the recent attacks on large-scale South Korean cryptocurrencies such as Bithumb.

In June this year, Bithumb , the world's most traded exchange, experienced a security breach that affected 30,000 users. As a result, the Exchange repaid $ 1 million of funds and provided an additional $ 1 million as compensation for the 30,000 users affected by the attack.

Shinhan Bank representative mentioned:

Shinhan Bank is testing a virtual Bitcoin vault platform to manage and distribute the private keys of Bitcoin addresses and wallets. Bank plans to provide free hosting services, only part of the cash withdrawal fee.
Shinhan Bank has set up a test server to demonstrate the mode of operation of this service. Then they will officially launch this service, customers can view the data through the mobile app and deposit information. With the disclosure of the personal information of more than 30,000 Bithumb users in June this year, Shinhan Bank's deposit service is definitely on the market.

In addition, Shinhan Bank serves millions of active users and tens of thousands of businesses in the country. Once the Bitcoin vault and wallet platform are integrated into the existing banking system architecture, more ordinary consumers will know bitcoin. The bitcoin's exposure in this major marketplace will therefore greatly increase the popularity of this digital currency in Korea.


The first bank to offer bitcoin hosting services

Once Shinhan Bank is due to launch its Bitcoin hosting platform as scheduled in mid-2018, it will be the first large commercial bank to provide such services. Encrypted currency wallets and exchange startup Coinbase also announced this month that it is launching a new storage service, Coinbase Custody, for institutional investors .

At this stage, whether Shinhan Bank will help customers achieve Bitcoin trading by providing Bitcoin brokerage and transaction services remains to be seen. However, the bank appears to be interested in working with South Korea Cryptocurrencies Exchanges such as Bithumb, Coinone and Korbit to improve the liquidity of the bank's client base.

Earlier this month, Choe Heung-sik, chief of the South Korean Financial Supervisory Authority (FSS), said the South Korean government will not set stringent regulatory rules for the cryptocurrency exchange in the future.

Although we are monitoring the trading of cryptocurrencies, we do not currently have a plan to directly monitor the exchange. We will not regulate until the legal status of digital tokens is recognized.
The country's second-largest bank has started to integrate and accept bitcoin, which means that bitcoin has become a legitimate currency in South Korea. Therefore, once the bank of Shinhan Bank formally integrates Bitcoin, the South Korean government is likely to follow Japan's regulation of bitcoin.