South Korea’s second largest bank to support Crypto

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22 Jan, 2018

South Korea’s second largest bank to support Crypto

The second biggest bank in South Korea has announced that it will begin supporting crypto-currency exchanges by the end of January.

Earlier last week, after the bombshell revelation that Kookmin bank – the biggest financial institution in South Korea – said that it wouldn’t support crypto, 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 taken a breather and are less afraid of 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 stop banks from providing services to cryptocurrency exchanges.

What is the future of Crypto-currency in South Korea?

This week, a few local media outlets reported that a high ranking financial authority in South Korea claimed the government will soon allow financial institutions to list bitcoin futures, as the US Commodities and Futures Trading Commission (CFTC) did in 2017.

The official explained that the listing of BTC futures would act as a stabilising stimulus to the market and enable the crypto exchange market to mature, reducing premiums and over-speculation by local investors.

In the approaching 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 ban crypto-trading in the short-term, the South Korean crypto-currency exchange market has been quite optimistic over the past few days, as shown by the rising price and volumes of crypto-currencies in both the South Korean and global market.

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