Financial institutions may be returning to the South Korean crypto market and privacy-focused blockchain project Miden is trying to get ahead of the curve.
Miden signed a strategic memorandum of understanding (MOU) with Korea Digital Asset (KODA), South Korea’s largest institutional custodian of digital assets, to collaborate on infrastructure and standards for the regulated adoption of digital assets in the country, the company said in a press release on Tuesday.
The partnership brings together KODA’s custody platform and regulatory expertise with Miden’s privacy-preserving blockchain technology, which is designed to support compliant financial applications, the companies said.
The partnership comes as South Korean financial institutions hope to return to digital assets, after the country’s top regulator signaled it could reverse a nine-year ban on corporate participation. The Financial Services Commission is considering rule changes that would allow companies to hold and trade cryptocurrencies.
In 2017, the FSC moved to curb direct cryptocurrency trading by banks and corporations through regulatory guidelines, as part of a broader push that also introduced stricter oversight of access to exchanges through real-name accounts. Officials said the measures were aimed at cooling what they called overheated speculation and strengthening safeguards against money laundering.
The deal comes as South Korea continues to expand its digital asset institutional framework. Recent regulatory developments include the approval of digital asset corporate accounts and ongoing discussions on bitcoin. spot exchange-traded funds (ETFs), which have increased interest from traditional financial institutions.
KODA was jointly founded by KB Kookmin Bank, one of the largest commercial banks in South Korea, 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 future compliance and security requirements.
“Miden is designed for institutions that want to build on blockchains but want privacy. Korea is a great opportunity because it already has a strong crypto culture and now its institutions are prepared to participate in greater numbers following the new FSC rules,” said Azeem Khan, co-founder of Miden, in emailed comments.
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