South Korea’s leading crypto exchanges are ready to renew their banking deals – in a sign that relations between the “big four” trading platforms and the traditional financial sector remain strong.
Per Business Post, Bithumb is close to sealing an agreement with NongHyup Bank (NH Bank). The agreement will see the two parties work together for at least another year.
Bithumb’s existing 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 had “strengthened anti-money laundering systems” and “provided stable services” since they first started collaborating. The parties first began working together five years ago. A Bithumb spokesperson stated:
“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 with ease.”
The move will come as a welcome tonic for the nation’s larger, older banks – who have risked becoming frozen out of the crypto picture by newer, IT firm-backed neobanks.
Last year, fellow “big four” exchange Coinone turned its back on NH Bank in favor of a deal with the Kakao-backed neobank Kakao Bank. Kakao is a tech giant that is most famous in South Korea for creating the KakaoTalk chat app.
Upbit, the market-leading crypto exchange, has enjoyed a huge surge in popularity since it partnered with the Kakao Bank neobank rival K Bank. Per Blockchain Today, the latter’s profits soared by over 270% year-on-year in FY2022, thanks mainly to its Upbit partnership.
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