Three of South Korea’s most prominent cryptocurrency exchanges, Bithumb, Coinone, and Korbit, have finally met the country’s regulatory requirements and reached agreements with banks before the September 24 deadline. An official from NongHyup Bank was the first to reveal this. According to the executive, banks have agreed to extend the agreement to issue real-name accounts for cryptocurrency traders on the Bithumb and Coinone exchanges.
The contracts for the two exchanges were set to expire on September 24. However, with the banks finally agreeing, exchanges will be able to register with the country’s financial authorities before the deadline.
However, the final arrangements have yet to be finalized. Nonetheless, the banking official stated that it will provide exchanges with the documents required to finalize their contracts.
Traditionally, these contracts were renewed every six months. However, the banks refused to reveal the terms of the most recent contracts.
In the meantime, Shinhan Bank, like NongHyup Bank, announced its intention to open real-name accounts for Korbit traders. However, the bank was quick to point out that confirmation does not imply that the contract with the crypto-exchange has been extended.
The document, according to the same, has been issued to allow the exchange to proceed with its registration process. According to a spokesperson,
“Whether or not we extend the partnership will be announced before the September 24 deadline, but for the time being, we are deferring that decision until later.”
If the exchange registers with the Financial Services Commission [FSC], the bank may extend its partnership with Korbit. In terms of the exchange, it hinted that the announcement could come “at the last minute.”
The Korea Internet and Security Agency has now granted banking support and an Information Security Management System [ISMS] certificate to the top four cryptocurrency exchanges in South Korea. Although many other small exchanges received the ISMS certificate, they have been let down by banks and are facing a shutdown as the process deadline approaches.