South Korea’s KB Bank to Offer Crypto Investment Fund

South Korean banks see the future of cryptocurrencies as KB Bank becomes the first lender in the country to consider offering crypto investment products to retail clients. Earlier, another lender in the country allowed customers to manage their non-fungible tokens (NFTs) on the banking app.

Announced on Monday, KB Bank formed a Digital Asset Management Preparatory Committee that will research and determine the digital asset products and strategies to be offered. It will also consider on compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term and risk of such offerings.

The bank is expected to launch crypto exchange-traded funds (ETFs) and futures products. Though it did not provide any timeline for the upcoming digital asset product launch, it assured that they will be rolled out soon.

“We will launch a virtual asset-themed equity fund, etc., as soon as possible. We will also publish periodicals,” said Hong-Gon Kim, the Head of KB Asset Management’s Index Quant Management Division.

The bank wants to launch one crypto investment index fund and another that utilizes an outsourced chief investment officer (OCIO), which might be used for retirement pensions. Both these funds will provide guarantees on principal investments.

Additionally, the official press release of KB Bank pointed out Grayscale and Fidelity Asset Management that might be considered as the OCIOs.

Mainstream Demand for Crypto Is Rising

South Korea is one of the top crypto markets when it comes to retail adoption. It is home to some of the popular crypto exchanges and the government is actively discussing policies around cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, including taxation.

However, KB Bank, which is among the largest lenders in the country, has fallen behind other Asian banks in bringing crypto products. Singapore’s DBS already launched crypto trading services for institutions and is now set to bring these services to retail customers.