Financial institutions may be returning to South Korea’s crypto market, and privacy-focused blockchain project Miden is trying to get ahead of the curve.
Miden has signed a strategic memorandum of understanding (MOU) with Korea Digital Asset (KODA), South Korea’s largest institutional digital asset custodian, to collaborate on infrastructure and standards for regulated digital asset acquisition in the country, the company said in a press release on Tuesday.
The partnership brings together KODA’s custody platform and regulatory experience with Miden’s privacy-preserving blockchain technology, which is designed to support compatible financial applications, the companies said.
The partnership comes as South Korean financial institutions eye a return to digital assets after the country’s top regulator signaled it may roll back a nine-year ban on corporate participation. The Financial Services Commission is considering rule changes that would allow businesses to hold and trade cryptocurrencies.
The FSC moved in 2017 to rein in direct crypto trading by banks and companies through regulatory guidance, part of a wider push that also introduced tighter monitoring of exchange access via real name accounts. Officials said the measures were aimed at cooling what they called overheated speculation and strengthening protections against money laundering.
The agreement comes as South Korea continues to expand its institutional framework for digital assets. Recent regulatory developments include the approval of corporate digital asset accounts and ongoing discussions around bitcoin spot exchange-traded funds (ETFs), both of which have increased interest from traditional financial institutions.
KODA was jointly founded by KB Kookmin Bank, one of South Korea’s largest commercial banks, and blockchain investment firm Hashed.
Miden is a blockchain infrastructure company focused on privacy-preserving financial applications. The platform uses zero-knowledge technology to enable selective privacy while supporting compliance and future security requirements.
“Miden is built for institutions that want to build on blockchains but want privacy. Korea is a huge opportunity because it already has a strong crypto culture and now its institutions are set to participate in greater numbers under the FSC’s new rules,” Azeem Khan, co-founder of Miden, said in emailed comments.
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