• South Korean banks more than doubled their revenue from crypto transaction fees in the second quarter

  • In the second quarter of 2021, three South Korean banks with crypto exchange partnerships reportedly made $14.71 million in transaction fees.

    According to The Korea Herald, Shinban Bank, K Bank, and NH Nonghyup Bank earned a total of 16.9 billion South Korean won in the second quarter.

    Upbit, Bithumb, Coinone, and Korbit, South Korea’s “big four” cryptocurrency exchanges, partnered with banks to source users’ real-name accounts.

    hyun’s the second quarter performance exceeded the first quarter’s approximate $6.8 million (7 billion won) mark, more than doubling transactions despite ongoing market fluctuations.

    According to the data, K bank’s partnership with Upbit resulted in the largest share of $10.4 million (12 billion won), accounting for more than 71% of total revenue. The bank earned 5.2 billion won from the crypto exchange partnership in the first quarter.

    The revenue generated by NH Nonghyup’s two-way partnership with Bithumb and Coinone was not as impressive as K bank’s. The bank earned approximately $2.6 million (3.1 billion won) from Bithumb in the second quarter, while Coinone contributed $1.5 million (1.78 billion won) throughout the fiscal year.

    In the most recent quarter, the Shinhan Bank–Korbit partnership reported the lowest earnings of nearly $0.3 million.

    Yun stated that the number of user accounts in the South Korean market has increased fivefold in this year alone, adding:

    “In comparison to the start of the year, the balance of deposits has quadrupled, and the coin craze has yet to end, with Bitcoin prices recently surging again.”

    When the total amount of deposits attributed to real name accounts for crypto trading was compared, South Korea saw a 316 percent increase, bringing the investment from $1.47 billion (1.7 trillion won) in 2020 to $6.14 billion (7.08 trillion won) by the end of July 2021.

    South Korean regulators have recently issued a warning to cryptocurrency exchanges to register voluntarily with local authorities by September 24. The warning was issued to all cryptocurrency exchanges that use the Korean language, Korean won, or serve the Korean market.

    Entities that do not comply will face up to five years in prison or a $43,500 fine (50 million won).

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