Hana Bank is joining hands with Upbit Global in technical cooperation to build a Travel Rule-based infrastructure for digital asset transfers.

Hana Bank said on Sept. 22 it signed a memorandum of understanding with Upbit Global at its headquarters in Euljiro, Jung-gu, Seoul to enable safe transfers of digital assets and lay the groundwork for regulatory compliance.

The Travel Rule is a regulation that requires related service providers, when transferring virtual assets, to secure and keep sender and recipient information and safely transmit required information to the counterparty provider.

Upbit Global operates a Travel Rule solution through its subsidiary VerifyVASP to verify sender and recipient information when transferring virtual assets. The solution supports transmitting information needed for regulatory compliance while protecting personal information.

Under the agreement, the two sides plan to jointly respond to changes in laws, institutions and regulations related to digital assets. They also plan to jointly research and test safe digital asset transfer technology and infrastructure, including the Travel Rule.

They will in particular review together requirements needed to apply the Travel Rule, including verification of sender and recipient information and secure transmission of information. They will seek ways to link financial institutions with domestic and overseas virtual asset service providers and also push information exchanges related to regulatory compliance.

Hana Bank also plans to identify new digital asset financial services using its existing experience in foreign exchange and payment and settlement operations and its financial infrastructure.

A Hana Bank official said the agreement is meaningful in that it creates a new cooperation model based on regulatory standards such as anti-money laundering between traditional financial institutions and the virtual asset industry.