South Korean banks are creating custody companies to deal with cryptocurrencies — without having to touch the asset itself

South Korea’s new legislation states that domestic entities cannot directly access the services of cryptocurrency exchanges.

So big banks in the country are partnering with fintech companies to allow their customers access to the crypto market in the form of digital asset custody services (DACS).

DACS provide customers with options like trade settlement, exchange, clearing, and corporate action execution — and they are perceived to be safer than crypto exchanges.