K bank, a South Korean internet-only bank, is looking into issuing new accounts for large cryptocurrency exchanges in South Korea.
It was confirmed that K bank is having continuous discussions with cryptocurrency exchanges and financial VAN (Value Added Network) companies to issue new accounts to cryptocurrency exchanges.
K bank is also thinking about increasing its sales through a new value-added business as it is expecting that financial authorities will soon allow banks to issue accounts to cryptocurrency exchanges after carrying out site inspections.
According to financial industries, K bank is looking into issuing new accounts to top cryptocurrency exchanges in South Korea. Not only is it having discussions with Chinese exchanges such as Huobi, but it is also having discussions with top South Korean cryptocurrency exchanges.
Huobi informed K bank that it is willing to work with K bank about issuing new accounts. However, K bank informed Huobi that it may take some time since it has yet to make a final decision regarding its new business.
Huobi Korea is set to launch a Won market that supports Won transactions sometime this month. It is also planning to work with K bank regarding K bank’s new business.
“Although we had discussions with K bank about its new business, we are still having discussions since K bank has not come up with a final decision yet.” said a representative for Huobi.
NH Bank and IBK Bank that have already started to issue accounts to exchanges are expecting that K bank will come up with a final decision soon after meeting with top cryptocurrency exchanges recently.
South Korean Government’s money-laundering regulations and its negative view towards cryptocurrency exchanges lie as possible obstacles for K bank’s new business.
Fortunately, financial authorities recently announced that it would allow virtual accounts to be issued to cryptocurrency exchanges once AML (Anti Money Laundering) problems are lifted through authentication.
Currently, commercial banks have stopped issuing new accounts to most of cryptocurrency exchanges or are issuing them conditionally due to AML regulation. As a result, most of cryptocurrency exchanges’ sales have turned into losses.
Catfish effect is to be expected when K bank starts issuing new accounts to cryptocurrency exchanges. Coinone and Bithumb and Korbit are receiving accounts from NH Bank and Shinhan Bank respectively. Because UPbit cannot receive accounts from commercial banks, there is a chance that it will work with K bank to be issued new accounts.
“We launched a corporate firm banking service last month and we are providing various services involving KT, PAYCO, Finnq, Donghang Lottery.” said a representative for K bank. “Cryptocurrency exchange can also receive our firm banking service and it will require more detailed review.”
Staff Reporter Gil, Jaeshik | osolgil@etnews.com