Risk Has Increased
"No Partnership Discussions for the Time Being"
[Asia Economy Reporter Sung Ki-ho] As financial authorities announce strict regulations on cryptocurrencies, cryptocurrency exchanges are increasingly sending 'love calls' to internet-only banks. However, internet banks are also reluctant to form partnerships, leading to a prevailing view that cooperation between the two sides will be difficult.
According to the financial sector on the 15th, multiple cryptocurrency exchanges have recently attempted to contact Toss Bank, which recently obtained official approval, to request the issuance of real-name accounts. However, there have been no concrete discussions regarding partnerships so far.
Currently, cryptocurrency exchanges holding real-name accounts include Upbit (K Bank), Bithumb and Coinone (NH Nonghyup Bank), and Korbit (Shinhan Bank), totaling four. According to the Act on Reporting and Using Specified Financial Transaction Information (Special Financial Transactions Act), cryptocurrency exchanges must obtain bank real-name accounts and apply for approval from the Financial Intelligence Unit (FIU) by September 24. Cryptocurrency exchanges that fail to receive FIU approval will be unable to operate won-denominated trading, threatening their survival.
While commercial banks have expressed reluctance to issue real-name accounts, internet banks are also hesitant to form partnerships. Kakao Bank, the industry leader, finds the high risks burdensome. This is due to concerns that unexpected incidents such as money laundering and hacking could occur, which they would be unable to handle. In fact, Busan Bank, which had been reviewing a partnership with cryptocurrency exchanges until recently, ultimately decided not to proceed. A Busan Bank official stated, "Although there are advantages such as securing accounts and fees, we judged that the risks, including concerns about money laundering, are greater."
K Bank, which partnered with Upbit, also has no plans for additional partnerships. K Bank earned 5 billion KRW in fees in the first quarter of this year and saw its customer base increase by nearly 1.5 million in April alone, showing positive effects. However, since all four major relatively stable exchanges have partnerships with banks, it is difficult to form additional partnerships with medium and small exchanges whose futures are uncertain.
The situation at Toss Bank is similar. Toss Bank has a stable foundation with 20 million Toss application users, providing more financial sector connections. Given this solid base, it is expected that taking on high-risk challenges during the early launch phase will be difficult.
An internet bank official said, "Toss Bank is already busy with its scheduled launch in September," adding, "Since Toss Bank's launch and the enforcement of the Special Financial Transactions Act occur around the same time, forming partnerships will not be easy."
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