Financial Heavyweight Woori to Launch B2B Crypto Wallet Management Platform
South Korea’s Woori Fund Service – a part of the financial business group that also comprises the commercial bank heavyweight Woori Bank – will team up with the domestic crypto exchange GDAC to unveil a business-to-business (B2B) crypto wallet management solution.
Hanguk Kyungjae reported that the solution will be a “cryptoasset wallet accounting” platform for “business users” – namely those working in the crypto sector.
GDAC explained that the following services would be provided for “virtual asset business owners” who “need continuous tax accounting management:”
- corporate accounting
- third-party verification
- cold wallet/hot wallet management services
- financial due diligence and reporting solutions
- daily balance dialog information and financial accounting data
- assessment verification service
South Korean laws governing the crypto sphere are developing fast, and exchanges and wallet providers have been told that they must conduct quarterly financial due diligence audits and maintain asset reserves that match at least 100% of their customers’ holdings on their platforms.
This has necessitated new accounting protocols for the industry, with some platforms experiencing phenomenal growth in customer deposits in short spaces of time – leaving them scrambling to match rapidly changing deposit figures with their own reserves.
The Woori move is a further shot in the arm for the cluster of small and medium-sized crypto exchanges that are attempting to gain ground on the “big four” platforms (Upbit, Bithumb, Korbit, and Coinone), which have all dominated the space in the past few years. Woori has explored various crypto and blockchain-related business avenues in the past.
And while the “big four” – which all have extensive banking partnership interests – make more likely bedfellows for larger banks looking at crypto-related business expansion, the aforementioned cluster (which comprises the likes of GDAC) has also bridged the gap between crypto and traditional finance in recent years.
This has mainly come as a result of negotiations with banks about fiat on/off ramps, as well as South Korean banks’ own interest in developing crypto-related services such as custody offerings.
This is not the only joint Woori-GDAC offering, however – the firms are also working on deploying corporate accounting data verification solutions and a platform that allows managers to access crypto transaction details handled by both domestic and overseas exchanges in real-time.
Meanwhile, KBS reported that new data from the regulatory Financial Supervisory Service (FSS) shows that in the nation the under-40s deposited around USD 16bn on the five biggest exchanges in the country last year (the big four plus Gopax). Over a third of all crypto investments were made by people in their 40s, the FSS added, and around 50% of all five exchanges’ customers were aged 30 or below.
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