South Korea's Second Largest Bank Supports Cryptocurrency Exchanges, Traders Relieved
January 22 2018 - 6:36AM
ADVFN Crypto NewsWire
South Korea’s Second Largest Bank Supports Cryptocurrency
Exchanges, Traders Relieved
Bithumb and Korbit, two of the largest cryptocurrency exchanges
in the South Korean market, have announced that Kookmin Bank
deposits and withdrawals will be disabled by the end of
January.
Shinhan Bank Will Support Cryptocurrency Exchanges
Kookmin Bank, the biggest financial institution in South Korea,
has decided not to support cryptocurrency exchanges and provide
virtual bank accounts to cryptocurrency investors. On South Korean
trading platforms, each investor is provided with a virtual bank
account with which they can withdraw and deposit Korean won,
without having to directly move funds from and to actual bank
accounts.
Over the past few weeks, local investors were concerned with the
abrupt decision of Kookmin Bank to close down virtual bank accounts
launched on South Korean cryptocurrency exchanges. Many traders
feared that other banks would follow the decision of Kookmin Bank
and simply cut financial links to cryptocurrency exchanges.
Earlier this week, Korbit told its users and traders that by the
end of January, the exchange will begin accepting deposits and
withdrawals from Shinhan Bank accounts instead of Kookmin Bank
accounts. The statement sent by Korbit to its users read:
“As previously announced, in order to comply with the
identification and anti-money laundering regulations being enforced
by the government, the current KRW deposit method will be
terminated by the end of January 2018.
To use the new KRW deposit method, which is slated to be
implemented within this month, you must have a Shinhan Bank account
registered under your legal name. Please use this time to create a
banking account at Shinhan Bank. We will follow up with further
instructions on how to input the new KRW withdrawal account
information on Korbit.”
With the recent announcement of Korbit, traders have become
relieved and started not to fear about the possibility of a
cryptocurrency trading ban. Previously, in an official document,
the South Korean government stated that it had requested financial
institutions and banks within the regulated finance industry to
prevent providing banking services to cryptocurrency exchanges.
What Will Happen to South Korean Cryptocurrency Market?
This week, several local media outlets reported that a high
ranking financial authority in South Korea claimed the government
is planning to allow financial institutions to list bitcoin
futures, as the US Commodities and Futures Trading Commission
(CFTC) did in 2017.
The government official explained that the listing of bitcoin
futures would stabilize the market and enable the bitcoin exchange
market to mature, reducing premiums and excessive speculation by
local investors.
In the upcoming months, the South Korean government will likely
roll out practical regulations to protect both investors and
businesses. In a statement released in December, a member of the
cryptocurrency regulation task force noted that the government will
follow the regulatory roadmap established by leading markets like
Japan and the US.
Given the current state of the market and the government’s
decision to not impose a trading ban in the short-term, the South
Korean cryptocurrency exchange market has been fairly optimistic
over the past few days, as shown by the rising price and volumes of
cryptocurrencies in both the South Korean and global market.
Ripple (COIN:XRPBTC)
Historical Stock Chart
From May 2024 to Jun 2024
Ripple (COIN:XRPBTC)
Historical Stock Chart
From Jun 2023 to Jun 2024