South Korea is reportedly launching a new blockchain-based ID verification system for domestic commercial banks.
The new system, dubbed BankSign, is scheduled to be launched in July according to coindesk, which cited a notice by the Korea Federation of Banks (KFB).
BankSign is built on Nexledger, a private blockchain platform developed by Samsung. It wil offer local banks an option to replace the existing ID verification system that has been in place for decades in South Korea.
The new ID service will be available for both online and mobile banking according to the KFB.
KFB, which represents commercial banks in South Korea, formed a banking blockchain consortium with domestic financial institutions in November 2017 According to Korea JoongAng Dail. The beta testing of BankSign started in April after the South Korean government had lifted its mandate that banks must use the traditional system
Earlier this year, the country’s financial regulator reportedly softened its stance on cryptocurrency trading, weeks after mulling a ban.
Choe Heung-sik, governor of the Financial Supervisory Service, said the government will support ‘normal transactions’ of cryptocurrencies according to Yonhap News.
At a meeting with representatives from cryptocurrency exchanges, Choe also said the government will ‘encourage’ banks to work with cryptocurrency exchanges, the report states. Currently, local banks have been reportedly reluctant to open virtual accounts for cryptocurrency trading amid the government’s crackdown.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
