One of the largest banks in South Korea, KB Kookmin Bank, has partnered with blockchain venture fund, Hashed, and crypto trading platform, Cumberland Korea, to form “strategic technology cooperation” on the custody of crypto assets. The companies belonging to the partnership state that their inception into the crypto custody business is a response to regulatory changes. South Korean government has enforced several crypto and blockchain-friendly regulations.
The partnership will inevitably open new doors to the consumers.
Simon Kim, the CEO of the Seoul and San Francisco-based firm, Hashed, said that combining their insight in the blockchain industry and providing technical and commercial consultations will open new doors to consumers and the country in ushering the new era of digital transformation.” The South Korean bank’s announcement comes after one of its major rivals, NongHyup, or NH Bank, said early in July that they plan to create crypto custodial services as well. However, NH Bank’s proposed platform will only focus on institutional investors. The Bank of Korea reportedly chose to establish a “Digital Innovation department” through organizational reform in the second half of this year as well.
South Korean government finalized a 20% tax rate on crypto incomes.
The South Korean government had earlier announced a 20% tax rate for income generated from cryptocurrency trading in the country. Following a Tax Development Review Committee meeting on July 22, the Ministry of Economy and Finance announced its revised tax code detailing the tax rules for income generated from the crypto trading. The government states that introducing taxation for crypto is now necessary, pointing to the approach taken by other countries as well. In some countries, cryptocurrencies are already taxed under similar regimes for income from stocks and derivatives trading.