Whether Korea Post’s president Kang knows this or not, the timing of the announcement looks perhaps mistimed, if not ironic, given Goldman’s Sach’s Group decision to refrain from offering digital currency trading products, and recently dropped their plan to open a crypto trading desk. As reported by CNBC’s Kate Rooney, Chavez apparently called the story “fake news”, though he did admit that there was now no timeline for enacting its plans.
Chavez did confirm the Goldman was working on a bitcoin derivative for its clients. An official from the bank said they were looking into bitcoin possibilities after receiving interest from clients.
Following a yearly low point on August 14, crypto markets had started to recover; only to have all of this wiped out in one bearish swoop, dumping billions out of digital assets.
South Korea’s national postal service operator, Korea Post, which also oversees $112 billion in investment funds has sought Goldman Sachs’ assistance in learning about cryptocurrencies. However, by sheer good luck, Crypto-News India didn’t give in to the hype and entirely skipped the news article (mostly because we did not want to perpetuate what was clearly Fear, Uncertainty and Doubt). Over the past few months, reports have made headlines indicating that the investment company was considering opening a cryptocurrency trading desk that would allow people to buy and sell various virtual currencies.
Even though Goldman Sachs has been clearing and providing liquidity for Bitcoin-linked futures contracts from the CBOE and CME, the bank also does not plan to engage in Physical Bitcoin until there is a reliable custody solution in place.
TOO RISKY. According to Business Insider’s sources, Goldman Sachs had hoped that by now the government would have established regulations to protect banks from some of the risks associated with trading crypto.
Last 24 to 48 hours the fall in cryptocurrency prices across the board has been associated with the Goldman Sachs stance on cryptocurrencies trading.
“… something tremendously interesting and tremendously challenging from the perspective of custody”. But according to CNBC, its plan for the initiative has never been very clear. In addition, the story cited the unclear regulatory environment of cryptocurrency-a feature that many have been alluding to as a barrier to institutional investors-was the primary reason for Goldman shelving the project, at least in the interim. Chavez indicated, “When we talked about exploring digital assets [.] it was going to be exploration that would be evolving over time”.