Hana Bank, Upbit Global Sign Travel Rule MOU on Digital-Asset Transfer Infrastructure

Hana Bank is partnering with Upbit Global to build infrastructure for digital-asset transfers based on the travel rule.

News1 reported on September 22 that Hana Bank signed a memorandum of understanding with Upbit Global to establish a framework for the safe transfer of virtual assets, or cryptocurrencies, and for regulatory compliance.

Under the agreement, the two companies will jointly respond to changes in digital-asset laws, systems and regulations. They also plan to cooperate on research and proof-of-concept work for the technology and infrastructure needed to apply the travel rule. In addition, they will pursue ways to link financial institutions with domestic and overseas virtual-asset service providers and exchange information related to regulatory compliance.

The travel rule requires service providers handling virtual-asset transfers to verify and retain information on senders and recipients and deliver the relevant data to the counterparty service provider. The two companies plan to jointly review practical matters needed for implementation, including verification of sender and recipient information and the secure transmission of that data.

Hana Bank also plans to draw on its experience in foreign exchange and payments to identify new financial services using digital assets.

A Hana Bank official said the agreement is significant in that a traditional financial institution and the virtual-asset industry can lead stringent regulatory standards, including anti-money laundering, while creating an effective new model for cooperation.