Home - Blockchain - South Korean Crypto Exchanges Set to Renew Banking Deals

James Carter

March 19, 2023

South Korean Crypto Exchanges Set to Renew Banking Deals

The “big four” cryptocurrency trading platforms continue to maintain positive relationships with the traditional financial industry, as evidenced by the fact that South Korea’s biggest cryptocurrency exchanges are prepared to extend their banking partnerships.

South Korean Crypto Exchanges Set to Renew Banking Deals

According to Business Post, Bithumb is getting very close to concluding a deal with NongHyup Bank (NH Bank). Under the terms of the agreement, the two companies will continue to collaborate for at least one more year.

On March 24th, the current collaboration agreement between Bithumb and NH will come to an end. Nonetheless, it seems that the procedure of renewing is now only a formality. The cryptocurrency exchange reported that the contract extension was “in its final phases” at this point.

Since they began working together, Bithumb and NH have stated that they have “improved anti-money laundering systems” and “maintained stable services.” It’s been five years since the parties first started cooperating with one another. A representative for Bithumb was quoted as saying:

The following week, we will put the finishing touches on the renewal of our real-name accounting arrangement with Nonghyup. And rest certain that we will continue to do everything in our power to establish conditions in which consumers can engage in commerce in an atmosphere characterized by convenience and security.

More Are Cryptocurrency Exchanges in South Korea Planning to Renew Their Banks Partnerships?

The move will be a good tonic for the nation’s larger and older banks, which had risked becoming locked out of the crypto picture by newer, IT firm-backed neobanks. The decision will come as a nice tonic for the nation’s larger and older banks.

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The previous year, one of the other “big four” exchanges, Coinone, ended its relationship with NH Bank in order to enter into a partnership with Kakao Bank, a neobank that is backed by Kakao. Kakao is a technology behemoth that is best known in South Korea for developing the chat application known as KakaoTalk.

The main cryptocurrency exchange, Upbit, has had a meteoric rise in popularity ever since it formed a partnership with K Bank, a neobank that competes with Kakao Bank. According to Blockchain Today, the latter company’s income in FY2022 increased by more than 270% year-on-year, primarily as a result of its cooperation with Upbit.

Instead of requiring new customers to visit brick-and-mortar locations in order to open accounts that are linked to cryptocurrency exchanges, K Bank makes it possible for new customers to open accounts via its mobile app.

Coinone and Kakao Bank are optimistic that the results of their relationship will be comparable to the previous one.

K Bank made the announcement that it would be discontinuing its PC services this month, citing the fact that very few customers made use of them. The bank announced that it intended to place more of its emphasis on its mobile services.

Shinhan Bank, which competes with NH Bank, is not expected to terminate the partnership contract it has already established with the Korbit exchange. The bank entered into an agreement for an investment arrangement the previous year that resulted in the bank having a minority ownership in the trading platform.

In the meantime, the operator of Upbit, Dunamu, has requested that the government ease the ban on initial exchange offerings in order to facilitate a bigger expansion within the cryptocurrency sector (IEOs).

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In 2018, distributing tokens of any kind in South Korea was made unlawful under any circumstances. According to Chosun Ilbo, the CEO of Dumanu, Lee Seok-woo, indicated that the legalization of initial coin offerings would foster “digital financial innovation” in the domestic cryptocurrency business.