Partners to jointly address regulatory changes in digital assets

Collaboration to also explore links between financial institutions and virtual asset operators

Hana Bank and Upbit Global signed an MOU at Hana Bank's headquarters in Jung-gu, Seoul, on Sept. 15 to cooperate on digital assets. Kim Guk-hyeon, chief executive of Upbit Global (left), and Eom Tae-seong, head of Hana Bank's AI Digital Innovation Group, pose for a photo after the signing ceremony. [Hana Bank]
Hana Bank and Upbit Global signed an MOU at Hana Bank's headquarters in Jung-gu, Seoul, on Sept. 15 to cooperate on digital assets. Kim Guk-hyeon, chief executive of Upbit Global (left), and Eom Tae-seong, head of Hana Bank's AI Digital Innovation Group, pose for a photo after the signing ceremony. [Hana Bank]

Hana Bank said Tuesday it will launch joint research with Upbit Global on infrastructure for the safe transfer of digital assets.

The two companies signed a memorandum of understanding at Hana Bank's headquarters in Jung-gu, Seoul, on Sept. 15, focusing on the Travel Rule as a framework for ensuring safe digital asset transfers and regulatory compliance.

Under the MOU, the partners plan to cooperate on jointly addressing changes in laws, systems and regulation related to digital assets; conducting joint research and proof-of-concept work on the technology and infrastructure needed for safe digital asset transfers, including the Travel Rule; reviewing ways to connect financial institutions with domestic and overseas virtual asset operators; and exchanging information on regulatory compliance.

The Travel Rule requires virtual asset service providers to collect and retain information on the sender and recipient of a transfer and to securely transmit the necessary details to the counterpart service provider.

Based on recommendations from the Financial Action Task Force, the rule aims to reduce the risks of money laundering and terrorist financing by ensuring that information about the parties to a transaction travels alongside the asset transfer.

Upbit Global operates a Travel Rule solution through its subsidiary VerifyVASP, which verifies sender and recipient information during virtual asset transfers. The solution transmits the information required for regulatory compliance while protecting personal data.

The two companies plan to jointly examine the requirements for applying the Travel Rule, including verifying sender and recipient information and ensuring its secure transmission.

The partnership was formed to proactively respond to rapidly shifting digital asset markets and regulatory environments at home and abroad. The two sides said they will cooperate on joint research and proof-of-concept work on the technology and infrastructure underpinning compliance with anti-money-laundering rules and personal data protection requirements.

Hana Financial Group acquired a 6.6 percent stake in Dunamu through Hana Bank this year for about 1 trillion won ($723 million), making Hana Financial the fourth-largest shareholder in Dunamu.

"This agreement carries great significance in that a traditional financial institution and a virtual asset company are together leading strict regulatory standards — including anti-money-laundering measures — and creating a new, effective model of cooperation," a Hana Bank official said. "We will continue to build a solid, regulation-friendly foundation for collaboration and use Hana Bank's advanced financial infrastructure and overseas network to develop innovative digital asset services."


hyuk@heraldcorp.com