- South Korean banks have made record profits this quarter when it comes to transaction profits, all thanks to the crypto industry.
- The bearish trend that had plagued the crypto market seemed to have made no impact on the usage and holding of digital assets.
- The South Korean banks have shaken hands with the four major cryptocurrency exchange platforms that operate in the country.
South Korea was among the foremost nations to come up with a law for the acceptance of any and all cryptocurrency service providers. For any cryptocurrency service provider to continue their services in the nation, the required criteria is a ‘partnership with nationally recognized banks.’
The four major crypto exchanges operating in South Korea that currently have partnered with banks are Upbit, Korbit, Coinone, along with Bithumb. The banks who have partnered with these exchanges have reported a revenue of 16.9 billion in the native South Korean currency (won). The huge surge in profits has been reported in the recent submission of financial reports for the second quarter of the current fiscal year.
South Korean banks partnering with crypto exchanges
According to the new rules imposed by the government, the exchanges that haven’t partnered with banks won’t be allowed to continue to provide services. There have been talks between the authorities and smaller exchanges regarding this law and its effects.
The banks have reported a twofold increase in their revenue due to a surge in cryptocurrency transfers and deposition, resulting in the collection of greater crypto transaction fees.
Among the four South Korean banks, the most prominent profit bearer is the partnership between Upbit and the K Bank. Their partnership yielded about 71 percent of the total revenue, which amounts to around 10.4 million USD or 12 billion won.
Compared to the first quarter of the current fiscal year, the bank had made only 5.2 billion South Korean won. This data shows that the partnership of South Korean banks and crypto exchanges has benefitted both parties equally.
Fearing from market manipulation or frauds and scam cases, the South Korean government has ordered any cryptocurrency service provider that has been working in between the boundaries of the nation to comply with the national rules.
If a firm that is a digital asset provider has been accused of or caught providing services without complying to the government’s laws after 24th September, all the executives will be jailed or fined. The fine has been put at around a whopping 43,500 USD along with a jail time of about five long years.