Amid Bitcoin craze, NH, K bank facing quandary over tie-ups with crypto exchanges
Corporate logos of NongHyup and K bank / Courtesy of each firmMeanwhile, Shinhan to extend ties with local crypto exchangeBy Lee Min-hyungAfter Bitcoin reached a record high, local banks and asset management companies are unexpectedly busy increasing their exposure to cryptocurrencies, with the country's financial regulators poised to step in with forthcoming new rules.The general opinion is that crypto assets are quite promising on multiple fronts, in terms of their usage and applicable areas, with a lot of investment banks, including Goldman Sachs, studying how they could be used. However, South Korea has been maintaining the hawkish stance toward cryptocurrencies that holding crypto assets will pose grave risks for banks, general consumers and even investment banks.That stance is pushing NongHyup (NH) Bank and K bank to face a growing quandary over whether they should extend their contracts with cryptocurrency exchange operators. So far this year, the two local lenders were supposed to keep issuing real-name accounts for their exchange partners. Real-name accounts are needed for i
May 25, 2021By Lee Min-hyung