[D.Fine] "The topic of the year is institutionalization... Local companies are preparing"
“Hanwha Asset Management has formed a digital asset management division this year, the first time in the industry. As institutionalization is the most important factor for blockchain, we’ll try harder to come up with reliable sources.” This was what Choi Young-jin, managing director at Hanwha Asset Management, said during D.Fine 2020. #Regulatory risk in direct investment... we’ll become an institution that people can trust” In the discussion session for D.Fine 2020, many people involving in the blockchain industry and companies sat down to have a discussion. Regarding the institution’s perspective toward the blockchain market, Choi said, “Institutions who have invested in blockchain have been growing rapidly. For instance, the market share for Grayscale Investments have soared by fourfold this year.” “Meanwhile, Hanwha Asset Management this year has formed a digital asset management division for the first time in the industry. We started this with the aim of offering investors a reliable source and information about blockchain.” Choi also pointed out some difficulties, “There are still some regulatory risks. Some companies publish tokens altogether, but in this case, it becomes more difficult for institutions to invest in the cryptocurrency market.” He also hinted about the possibility of admitting cryptocurrency as a real asset. “Signs are already showing in Korea such as imposing taxation on cryptocurrency,” said Choi. Han Dae-hoon, an analyst at SK Securities, said, “If other countries such as the United States make a law regarding cryptocurrency, other countries would seek to benchmark it and it could eventually help realize the institutionalization of cryptocurrency.” “With the increasing volatility of currency, all assets including bitcoin have been soaring. Unlike in 2017, when individual investors dominated the bitcoin market, now it is led by institutions,” added Han. #“The riskiness of bank custody services... The introduction of my:DApp” How banks look at the blockchain market was also discussed during the event. Regarding the issue of bank’s cryptocurrency custody services, Ryu Chang-bo, head of the Digital R&D Center of NH Nonghyup, said the introduction of a custody service has more risks than legal issues. “Many banks have been studying for the custody service but they all show passive attitudes toward it as the service could carry some risks of money laundering.” According to Ryu, NH Nonghyup on Nov. 16 has launched a decentralized identity app called my:D. Instead of adopting a central sever system like other apps, my:D allows customers to have their own information only in their own devices. It matches with the concept of blockchain, which is focused on decentralization, as well as being able to protect customers’ privacy. “We plan to use blockchain in many more services that are often used by customers,” said Ryu. #“DeFi industry has constantly been growing.” Mo Jong-wu, the co-founder of GrowFi, also participated in the discussion. “As a person who is currently working in the DeFi industry, the DeFi market has constantly been growing. Besides just statistics, DeFi has been achieving significant results in foreign countries,” Mo said. “In Germany, after the ‘Know your customer’ identification procedure, people can borrow stablecoin secured on their real estate.” According to Mo, recent DeFi projects have been making various attempts without any clear institutional stance. If it could be regulated officially, the DeFi industry will be able to secure a clear direction. Many professionals participated in the D.Fine 2020 discussion session including lawyer Chae Min-seong, Mo Jong-wu, co-founder of GrowFi, Han Dae-hoon, an analyst at Sk Securities, Ryu Chang-bo, head of Digital R&D Center of NH Nonghyup, and Choi Young-jin, managing director at Hanwha Asset Management.