Crypto Custody Vital for Rapid Growth, Says Korea Institute of Finance Director

The Korea Institute of Finance’s director, Gong-pil Choi said that official custody in crypto is a critical step in the direction of eliminating hacking efforts and doubt in people’s mind regarding the dealings in crypto or any digital asset. This step would boost the confidence in investors and stimulate the growth in the market.

The Korea Institute of Finance works with the Korean government to research and examine the financial policies of the country. It plays an essential role in boosting Korea’s financial sector. The institute has notified that due to some public policies in the country, ordinary investors are finding it hard and riskier to invest in Bitcoin and other cryptocurrency wallets. They are not assured of their safety.

Asset managers or financial advisers are providing the custody of traditional assets as there is a risk involved in owning an asset. The director of the institute said that in the coming few years, the cryptocurrency market would grow rapidly. Many investors will be holding the digital assets. In such a case, there has to be a secured and regulated way to deal with these assets.

Major cryptocurrency exchanges like Coinbase from the U.S. deliver reliable and secured custodial services to their investors. Some companies operating in the cryptocurrency space like BitGo have acquired well regulated, trustworthy custodians who provide cryptocurrency custodial facilities to investors.

In countries like China, where any dealings in cryptocurrencies are banned, crypto custodians have come up with strong support from local capital providing firms. In November, startup firm from Shanghai started providing custodian services to crypto trading platforms and OTC exchanges, in November.

A general partner at one blockchain investment firm from South Korea said that if an asset manager or an investment institution wants to enter the crypto assets market, custodial services are necessary to support and boost huge investment.

In today’s time, Fidelity is the only institution which provides crypto custody to the world’s most prominent financial organizations.

Regulators and securities while dealing in large investments are needed, and investors are expecting these facilities.