South Korean KakaoBank is Considering Partnerships With Crypto Exchanges

KakaoBank, a South Korean digital bank, stated that it evaluates cooperation with a local cryptocurrency exchange during its quarterly business performance conference. Yun Ho-young, CEO of KakaoBank said, “Because [crypto] is regarded as a key asset among clients, we’re looking into how we can give virtual assets in the form of services or as a business in a positive light.” To comply with anti-money laundering requirements, cryptocurrency exchanges require banking partners to furnish real-name deposit and withdrawal accounts to offer cash-to-crypto services. According to local sources, Kakao is considering partnering with Coinone, which the digital Bank has rejected. KakaoBank’s Competing Neobank After partnering with the nation’s largest cryptocurrency exchange Upbit, KakaoBank’s competing neobank K Bank recorded its first annual surplus in 2021 and tripled its number of members since 2020. With 18 million customers, KakaoBank is South Korea’s largest digital bank. In Q1 2022, the Bank posted its highest-ever operating income of 88.4 billion KRW (US$70.14 million), a 63.8 per cent increase year over year. Currently, all crypto exchanges in South Korea are required to have a direct partnership with banks to assure real-name deposit and withdrawal accounts and provide crypto to fiat deposit and withdrawal services, according to the country’s crypto regulatory regulations. As a result, the Bank may form partnerships with other ...