South Korea’s Second Largest Bank Enables Transactions to Cryptocurrency Exchanges
It has been reported that Shinhan Bank, South Korea’s second-largest bank, will soon start to conduct deposits and withdrawals to cryptocurrency exchange platforms. Kookmin Bank, the country’s biggest financial institution, recently announced they would halt all transactions to and from Bithumb and Korbit, leading cryptocurrency exchange platforms in this Asian country. It is, therefore, no wonder why the Shinhan Bank’s plans relieved many of South Korea’s traders.
Shinhan Bank Will Enable Deposits and Withdrawals
In South Korea, every cryptocurrency investor gets a virtual bank account, through which he can deposit and withdraw the national currency, Korean won, eliminating the need to move money between actual bank accounts. Kookmin Bank recently announced they will stop providing and managing these accounts by the end of January. South Korean traders, who were concerned that other, smaller banks would follow the decision of Kookmin Bank, are now glad to hear that Shinhan bank is stepping into the game.
The previous week, users of Korbit exchange were greeted with the following message: “As previously announced, in order to comply with the identification and anti-money laundering regulations being enforced by the government, the current KRW deposit method will be terminated by the end of January 2018."
To use the new KRW deposit method, which is slated to be implemented within this month, you must have a Shinhan Bank account registered under your legal name. Please use this time to create a banking account at Shinhan Bank. We will follow up with further instructions on how to input the new KRW withdrawal account information on Korbit.”
The second part of the announcement represents a major setback in Seoul’s plan to ban cryptocurrency trading since it counters the recently issued official document, in which the South Korean government appealed to the financial institutions and banks to cease offering banking services to cryptocurrency exchanges.
The Future of South Korean Cryptocurrency Market
Several local media reported that South Korean financial authorities choose to follow the US Commodities and Futures Trading Commission’s (CFTC) decision and allow the listing of bitcoin futures. They expect it to stabilize the market and reduce the widespread speculation by investors. They will in many ways try to replicate the regulatory legislation of USA and Japan, the world leading cryptocurrency markets.
The more optimistic news and the government’s decision not to impose a complete trading ban that soon, but rather regulate it, reduced the fear of Korean investors and resulted in higher volumes on South Korean exchanges.