South Korean Banks gained double revenue worth $14.71 million in transaction fees from cryptocurrency exchanges in the second quarter.
According to the Korea Herald, NH Nonghyup Bank, K Bank, and Shinhan Bank announced total revenue of 16.97 billion South Korean won in Q2. The four crypto exchanges in South Korea like Upbit, Bithumb, Coinone and Korbit, signed real-name verification account contracts with banks. That’s more than double the 7.55 billion won ($6.5 million) in the first quarter.
The Report shows that Korea’s biggest crypto trading platform, Upbit, paid 12.07 billion won ($10.5 million) to online bank k-bank in Q2. In the first quarter, the bank received 5.248 billion won through a crypto exchanges partnership.
In Q2, fees paid by all exchanges to the bank each more than doubled compared to the first quarter. Only four largest trading platforms, Upbit, Bithumb, Coinone, and Korbit, have so far succeeded in finding a banking partner.
The online K Bank currently opens a real-name account for Upbit. The Shinhan Bank is working with Korbit, and NH Nonghyup Bank provides services to Bithumb and Coinone. Nonghyup Bank received 1.3 billion won in Q1, and 3.13 billion won in Q2 from Bithumb. Coinone exchange won 333 million won in Q1, and 1.45 billion won in Q2.
Also Read: Crypto Exchanges in Korea to Shut Down amid FSC Inspection
Exchanges have until Sept 24 to register with Korea’s Financial Intelligence Unit or they will have to shut down. In order to register, they must fulfill certain requirements. It includes partnerships with banks for real-name registration and approval for their “know-your-customer” processes.
Chang -Hyun said, “Compared to the beginning of the year, the number of accounts has increased 5 times and the balance has increased 4 times”. He added that “We should start designing ‘Exchange 2.0’ to stably operate the growing market such as the transparent operation of the company”.
