South Korea’s Naver News service reported that the country’s financial regulatory service is poised to approve Hanwha Asset Management’s application for cryptocurrency-related funds., a subsidiary of South Korean insurance giant Hanwha Life Insurance.
Citing an official from the Korean Financial Investment Association, the report indicated that FSS approval could come on May 2nd.
The fund, nicknamed “Digital Hero”, will invest in cryptocurrency companies such as exchanges and mining companies. Funds that invest directly in cryptocurrencies and traded securities, such as Funds such as exchange traded funds are still banned in South Korea.
In conversation with the Seoul Economic Daily in early April Choi Young-jin, Head of Hanwha Asset Management’s Digital Strategy Division, commented on the proposed fund, stating:
“We plan to launch equity funds that invest in global companies involved in digital assets such as settlement, transaction and mining.”
Hanwha aimed for significant expansion in digital assets and created a dedicated cryptocurrency affairs team with staff including experts in information technology and cryptocurrency.
Digital Hero is the latest indication of Hanwha’s growing interest in cryptocurrencies. In fact, Hanwha Investment Securities, another subsidiary, has a stake in crypto exchange operator Upbit Dunamu.
As Cointelegraph previously reported, Hanwha’s investment in Dunamu has made the company’s stock one of the top performers in the country amid the frenzied cryptocurrency trading in South Korea.
The company’s share price, which is up 123% at press time this year, could generate even more profit if Dunamu continues his exit plans in the US.
The digital asset fund approval report is based on rumors of stricter cryptocurrency measures in the country, particularly related to the tax system that will go into effect in January 2022.
In early April, the Financial Services Commission ordered its employees to disclose their cryptocurrency holdings.