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KODA Sees Rapid Growth in Crypto Assets Under Custody
Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, has experienced significant growth in the value of crypto assets under its custody. The company reported a nearly 248% expansion in the value of these assets in the second half of 2023. This growth led to the total value of the assets reaching approximately 8 trillion Korean won ($6 billion) by the end of the year, a substantial increase from the 2.3 trillion won recorded at the end of June 2023.
Partnership and Market Share
KODA was established through a collaboration between major Korean bank KB Bank, crypto venture capital firm Hashed, and blockchain tech firm Haechi Labs. The company currently holds an 80% market share in the local crypto asset custody sector and serves approximately 50 corporate clients, managing over 200 wallets.
Regulatory Environment and Future Expectations
South Korea imposes restrictions on institutions and corporations, preventing direct investment in crypto through exchanges. However, crypto custodians like KODA offer institutional investors a regulated avenue for managing crypto assets. KODA expects the demand for crypto custody services to continue rising in the future, especially in light of recent announcements by the ruling and opposition parties in South Korea pledging to launch local spot Bitcoin exchange-traded funds (ETF) as part of their election promises.
Recent Developments and Potential Impact
The ruling People Power Party in South Korea has proposed a two-year postponement of the taxation on gains from cryptocurrency investments as a potential campaign promise. This move is part of a broader strategy to establish a comprehensive regulatory framework for cryptocurrencies before implementing taxation measures. The party is also considering introducing a bill encompassing essential elements for potential crypto regulations, including requirements for crypto custody providers and guidelines for token listing. These developments could have a significant impact on the crypto market in South Korea.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
