South KoreaMajor crypto exchanges are set to renew their banking deals – in a sign that ties between the “Big Four” trading platforms and the traditional financial sector remain strong.
Per business post, Bithumb is close to sealing a deal with Nonghyup Bank (NH Bank). Agreement that will see the two parties working together for at least another year.
Bithumb’s current NH partnership deal is set to expire on March 24. But the renewal process now appears to be a formality. The crypto exchange said the renewal deal was now “in its final stages”.
Bithumb and NH said they have “strengthened anti-money laundering systems” and “delivered stable services” since they first began collaborating. The parties first started working together five years ago. A spokesperson for Bithumb said:
“We will finalize the renewal of our real name accounting deal with Nonghyup next week. And we will continue to do our best to create an environment where customers can trade safely and conveniently.”
More South Korean crypto exchanges ready to renew their banking deals?
The move will come as a welcome tonic for the country’s big, old banks – which have risked being pushed out of the crypto picture by new, IT firm-backed neobanks.
Last year, fellow “Big Four” exchange Coinone turned its back on NH Bank. Kakao-backed Neobank favors deal with Kakao Bank, Kakao is a tech giant most famous in South Korea for creating the KakaoTalk chat app.
Upbit, the market leading crypto exchange, has enjoyed surge in popularity Since it has partnered with Kakao Bank Neobank rival’s bank. Per blockchain todayThe company’s profits grew more than 270% year-over-year in FY2022, largely thanks to the Upbit partnership.
Instead of requiring customers to visit brick-and-mortar offices to create accounts linked to crypto exchanges, KBank allows new customers to open accounts through its mobile app.
Coinone and Kakao Bank hope their partnership will produce similar results.
K Bank announced this month that it was discontinuing its PC services, claiming that few customers were using them. The bank said it wants to focus on its mobile services.
NH Bank is unlikely to break away from its own partnership deal with rival Shinhan Bank Korbit Exchange. Last year, the bank agreed an investment deal that left it with a minority stake in the trading platform.
Meanwhile, Upbit operator Dunamu has called on the government to enable greater growth in the crypto sector by lifting restrictions on initial exchange offerings (IEOs,
All forms of token issuance were outlawed in South Korea in 2018. But Chosun Ilbo Dumanu CEO Lee Seok-woo pointed out that IEO legalization would spur “digital financial innovation” in the domestic crypto sector.