South Korea’s internet-only bank KakaoBank has signed a contract with local cryptocurrency exchange Coinone to provide withdrawal and deposit accounts to investors under their real names, per local regulations.
See related article: South Korea’s crypto crackdown: What you need to know
Fast facts
- While the partnership deal has been settled, it has not been announced when Kakao will begin supplying bank accounts to Coinone.
- Coinone has already partnered with NH Nonghyup Bank for real-name bank accounts since September last year. NH also provides accounts for another local exchange, Bithumb.
- Coinone will be the first local exchange to have two banks host accounts for its users, while local reports raise the possibility of the exchange terminating the partnership with NH.
- Last year, South Korea required local cryptocurrency exchanges to acquire bank contracts to provide users with withdrawal and deposit accounts under their real names to minimize risks of financial crime such as money laundering or embezzlement.
- Only the exchanges that successfully met the requirement were granted to operate cash-to-crypto services.
- Five exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — have managed to fulfill South Korea’s requirements.
See related article: South Korea’s all-encompassing crypto law is coming — what we know so far