Source: Adobe / Henning Marquardt
The South Korean group of commercial banks that recently ruled out working with domestic crypto exchanges may be forced to regret their decisions after financial-year first-quarter figures revealed windfall fee gains for banks currently working with trading platforms. .
According to data compiled by the office of the ruling Democratic Party legislator Kim Byung-wook, which was released yesterday, a whopping $ 57.5 billion in tokens and fiat has been traded through banks in the form of deposits and bank withdrawals in the first quarter.
The figures, Maeil Kyungjae reported, also showed that K-Bank , which is associated with the Upbit exchange , raised $ 4.5 million in fees in the first quarter, up from just over $ 500,000 in the last quarter of fiscal 2020. There were also big paydays for Nonghyup (NH) Bank, which earned more than $ 1.5 million in commissions from its partners Bithumb Y Coinone . Shinhan , which earned just $ 14,388 from its association with Korbit In the fourth quarter of fiscal 2020, it accumulated $ 130,400 in commissions last quarter.
Although figures like these are still a drop in the bucket for companies like NH and Shinhan Bank, which represent less than 1% of their total earnings for the quarter, the same is not the case with neobank K-Bank, which has seen new figures. of account holders skyrocket beyond their wildest dreams in recent months.
The latter is reportedly almost certain to renew its contract with Upbit later this summer, and has managed to increase its number of account holders due to what must be one of the most lucrative banking-crypto exchange partnerships in Asia. .
Sources close to the South Korean banking industry have told Cryptonews.com that other neobanks also have their eyes on the sector.
Their number could include K-Bank’s biggest rival, the Kakao -run neobank Kakao Bank , while a conventional rival, BNK Busan, has also expressed interest.
However, Shinhan and NH’s rivals, Woori , Kookmin (KB) and KEB Hana They have ruled out working with the exchanges for the foreseeable future as the exchanges rush to seal deals ahead of the government-imposed Sept. 24 deadline.
Exchanges that do not ensure banking associations to provide authenticated accounts with real name and social security number before the cutoff point will be ordered to close or face criminal prosecution.
Kim claimed the figures pointed to an “exponential increase” in the size of the sector, saying:
“[El gobierno] must urgently create a national legal framework related to crypto assets to protect investors from the [cripto] fraud and piracy-related damages. “
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