Big 4 S. Korean Crypto Exchanges Renew Banking Deals, Strengthening Sector
• South Korea’s leading crypto exchanges are close to sealing an agreement with NongHyup Bank (NH Bank) to renew their banking deals.
• Upbit, the market-leading crypto exchange, has enjoyed a huge surge in popularity since it partnered with the Kakao Bank neobank rival K Bank.
• Shinhan Bank is unlikely to depart from its own partnership deal with the Korbit exchange.
South Korean Crypto Exchanges Set to Renew Banking Deals
South Korea’s leading crypto exchanges are ready to extend their existing banking deals – showing that relations between traditional financial institutions and digital asset trading platforms remain strong. Bithumb is close to finalizing an agreement with NH Bank, which will last for at least another year. The two parties first began working together five years ago, and have since strengthened anti-money laundering systems and provided stable services.
Upbit Partners with K Bank
The market-leading crypto exchange Upbit has experienced a surge in popularity due to its partnership with the Kakao-backed neobank K Bank. According to Blockchain Today, this collaboration drove K Bank’s profits up by over 270% year-on-year in FY2022. The bank allows customers to open accounts via its mobile app, rather than requiring them to visit brick-and-mortar offices. Coinone and Kakao Bank are also hoping that their partnership will be similarly successful.
K Bank Shuts Down PC Services
K Bank recently announced that it was shutting down its PC services due to few customers using them – instead opting to focus on mobile services only. This move highlights how technology is enabling banks and other financial institutions to provide more convenient services for customers who want access digital assets like cryptocurrencies securely and easily.
Shinhan Stays With Korbit Exchange
Shinhan Bank is not expected alter its existing partnership deal with the Korbit exchange any time soon either. Last year, the bank agreed on an investment contract that would see it become Korbit’s largest shareholder by 2021 – indicating a commitment towards supporting digital asset trading platforms in South Korea for the foreseeable future.
These developments suggest that South Korea’s “big four” crypto exchanges are eager build on their existing partnerships with traditional banks – while taking advantage of new technologies offered by neobanks too where appropriate. This could lead greater stability for both parties involved as well as enhanced security for individual traders using these platforms in future months and years ahead