‘Optimism’ for South Korean Crypto Exchanges as Gopax Makes Banking Breakthrough

cryptonews.com:

South Korean crypto observers are predicting a “tectonic change” in the crypto exchange sector after a fifth trading platform struck a banking deal that will allow it to resume crypto-to-fiat trading.

Yonhap reported that Gopax, one of the largest of the non-“big four” exchanges (Upbit, Bithumb, Coinone, and Korbit), has struck a deal with Jeonbuk Bank, a newer, regional bank that will allow its customers to return to the fiat markets.

A senior employee at one of Gopax’s rivals told Cryptonews.com under the condition of anonymity that this development was cause for “quiet optimism” – adding that their trading platform was “continuing to speak to” domestic banks about a possible deal of its own.

Smaller banks have eyed the runaway success of Upbit’s partner, the neobank K-Bank, which has seen its user base swell as a result of its crypto exchange partnership. However, a major prohibitive factor has been the fact that the South Korean government has told banks that they must absorb all potential risks associated with crypto exchange business. Many banks have been scared off by concerns that hacks or incidents of money laundering on partner platforms could damage their international standing.

Yonhap added that Gopax’s journey to join the “big four” is not over yet. The firm will now have to report the fact that it has a banking deal in place to the Financial Information Unit, an agency that reports to the top regulatory body, the Financial Services Commission.

Gopax will also need to apply for a fiat won-trading license. However, providing the exchange and its banking partner’s paperwork is submitted according to protocol, it should now be a matter of “when” rather than “if” it can resume offering KRW pairings.iNews24, which