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Debate grows over Korea’s single-bank policy for crypto exchanges

Woori Bank has reignited a debate as to whether Korea will lift the regulation that limits cryptocurrency exchanges to partnering with only one bank for deposit and withdrawal accounts, according to industry watchers on Friday. Since the introduction of the real-name system for cryptocurrency trading in 2018, individuals have been required to conduct transactions on exchanges using real-name verified accounts issued by banks. This has led exchanges to establish partnerships with banks. However, current regulations restrict each exchange to partnering with only one bank. Regulators implemented this policy to enhance transparency in fund flows and prevent money laundering. At a meeting with lawmakers from the ruling People Power Party who oversee financial affairs Wednesday, Woori Bank CEO Jeong Jin-wan called for removing the rule. Rep. Kang Min-kuk, who attended the meeting, quoted Jeong as saying, "The current system, which restricts each cryptocurrency exchange to a single banking partner, raises concerns about system stability, reduces options for consumers and may impose limitations

Apr 11, 2025By Jun Ji-hye
Debate grows over Korea’s single-bank policy for crypto exchanges

Shinhan, NongHyup, Kbank join experimental stablecoin initiative for global trade

Shinhan Bank, NH NongHyup Bank and Kbank have joined a Japan-led international project to create a blockchain-based system for cross-border payments aimed at fixing long-standing problems in global money transfers, the banks said Thursday. At the center of the initiative, called Project Pax, is the use of stablecoins — digital assets that try to keep a steady value by linking to government-issued currencies like the U.S. dollar or to physical assets like gold. Tether (USDT) and USD Coin (USDC), both pegged one-to-one to the U.S. dollar, are among the most widely used stablecoins. Project Pax is led by the three largest banks in Japan where stablecoins are already legal. Stablecoin-based transfers are expected to drastically cut fees and processing times compared to traditional cross-border payments. Major banks from multiple countries are collaborating to test stablecoins in remittances, currency exchanges and offshore settlements, with the goal of proving their speed and efficiency in simplifying global transactions. Participating Korean banks aim to assess the feasibility of using a wo

Apr 11, 2025By Jun Ji-hye
Shinhan, NongHyup, Kbank join experimental stablecoin initiative for global trade

Reporter's notebook Bank of Korea’s CBDC trial: Promising, but not yet ready to compete

On Wednesday, this reporter tested a new payment method available at a 7-Eleven convenience store: a central bank digital currency (CBDC) introduced by the Bank of Korea (BOK) as part of a pilot program launched the day before. Named Project Hangang, the three-month pilot by the BOK and seven local banks aims to test if a CBDC can be a viable alternative to Korea’s current transaction and settlement systems. To get started, a digital wallet was created using Hana Bank's mobile app. The registration process involved agreeing to the terms, scanning a government-issued ID, verifying the identity, linking a bank account and setting a password. The steps felt similar to applying for financial products online, and the entire process took less than five minutes. The next step was to top up the digital wallet using deposit tokens. When the user transfers funds from their regular bank account into the wallet, the money is converted into these tokens. Topping up was simple, just a few taps after selecting the desired amount. Converting the tokens back to cash was just as easy. When it came time

Apr 3, 2025By Lee Yeon-woo
[Reporter's notebook] Bank of Korea’s CBDC trial: Promising, but not yet ready to compete

Korean crypto exchanges take early steps to attract corporate investment

Korean cryptocurrency exchanges are ramping up efforts to attract corporate investors and establish a dominant position in the market, industry observers said Monday, as corporate investment in virtual assets is gradually being permitted starting in the first half of the year. Korea's top two cryptocurrency exchanges, Upbit and Bithumb, recently launched dedicated sections on their official websites for corporate account inquiries and have begun accepting applications from business clients. Once an inquiry is submitted, a corporate representative from the exchange follows up to provide detailed instructions and support. "For corporate clients, the key factors are the exchange's credibility, investment efficiency and its potential for growth as a long-term partner," a Bithumb official said. "Bithumb is ready to go beyond short-term trading and serve as a strategic asset management partner for businesses." Korbit recently teamed up with Shinhan Bank to actively expand its corporate services. The exchange said it is pursuing a wide range of entities, including government agencies, publicly

Mar 31, 2025By Lee Yeon-woo
Korean crypto exchanges take early steps to attract corporate investment

Is Balaan’s payment suspension leading to second TMON-WeMakePrice crisis?

Luxury online platform Balaan initiated corporate rehabilitation proceedings a week after facing controversy over delays in settling sales proceeds, the company CEO said Monday. According to industry officials, Balaan has failed to settle payments to some vendors, citing a system error, since last week, leaving them unable to receive at least 13 billion won ($8.8 million) in sales proceeds. This has heightened concerns that the situation could mirror the cases of two e-commerce platforms, TMON and WeMakePrice, which also entered corporate rehabilitation last year after experiencing payment delays. Balaan CEO Choi Hyung-rok said in a statement that while the company had secured part of the planned investment for the first quarter of this year, additional funding was delayed unexpectedly, leading to a short-term liquidity crunch. “To ensure the stable repayment of merchandisers’ trade receivables and enhance the sustainability of the Balaan platform, we filed for rehabilitation with the Seoul Bankruptcy Court,” he said. After failing to settle payments to vendors on March 24, Balaan a

Mar 31, 2025By Jun Ji-hye
Is Balaan’s payment suspension leading to second TMON-WeMakePrice crisis?

Cryptocurrency investors in Korea surpass 16 mil.

The number of virtual asset investors in Korea has surpassed 16 million, drawing close to overtaking the number of stock investors in the country, data showed Sunday. A total of 16.29 million people had accounts at the top five domestic virtual asset exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — as of late February, according to data submitted to Rep. Cha Gyu-geun of the minor opposition Rebuilding Korea Party. Those who owned multiple accounts at different exchanges were only counted once. Simply put, nearly 32 percent of the country's population was participating in the cryptocurrency market. The number of crypto investors exceeded the 14 million mark for the first time in March 2024 before over 500,000 people newly entered the market in November with the election of U.S. President Donald Trump, surpassing the 15 million mark. Some industry officials expect the number of cryptocurrency investors will soon reach 20 million, given the continuing upward trend this year. "Some believe the crypto market has reached a saturation point, but there is still an endless possibility f

Mar 30, 2025By yonhap
Cryptocurrency investors in Korea surpass 16 mil.
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