South Korean commercial banks, which recently ruled out dealing with national cryptocurrency exchanges, may regret their decision: indeed, fiscal first quarter data showed exceptional revenue levels for banks that currently have partnerships with these platforms.
Based on data collected by the Legislative Office. Kim Byung Wook, a member of the ruling Democratic Party and made public yesterday, a staggering $ 57.5 billion in crypto and fiat currencies were sold by banks in the form of bank deposits and withdrawals in the first quarter.
The figures provided by Mail Gyeongjae also show that K-Bankwho is the partner of the scholarship Upbit, collected a commission of $ 4.5 million in the first quarter, up from just over $ 500,000 in the last quarter of fiscal 2020. NongHyup Bank (NH) also received significant amounts, with commissions paid by partners amounting to more than $ 1.5 million. Bithumb as well as Coinone… Shinhanwho earned just $ 14,388 through a partnership with Corbit In the fourth quarter of fiscal year 2020, the accumulated commission for the last quarter was $ 130,400.
These numbers are only a small percentage for banks like NH and Shinhan Bank (less than 1% of their total quarterly profit). On the other hand, this increase is significant for K-Bank, which has seen a sharp increase in the number of new account holders in recent months.
The renewal of K-Bank’s contract with Upbit this summer is almost inevitable – this partnership between the cryptocurrency bank and the exchange is currently one of the most lucrative in Asia.
Sources close to the South Korean banking sector told Cryptonews.com that other neobanks have also shown interest in the sector.
These may include K-Bank’s largest competitor, neobank managed by Cocoa, Cocoa Bankas well as regular banking Bnk busan…
Shinhan and his rivals Woori, Kukmin (KB) and KEB Hana ruled out the possibility of cooperation with exchanges in the near future, as the latter are trying to conclude deals before the government-set deadline of September 24.
Exchanges that are unable to enter into banking partnerships to provide accounts authenticated with real name and social security number before the deadline will either have to close their doors or face criminal prosecution.
Mr. Kim said the numbers indicate “exponential growth” for the industry and said:
“[Le gouvernement] there is an urgent need to create a national legal framework for crypto assets to protect investors from fraud. [crypto] and damage related to piracy. “
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