Bithumb May Ditch NongHyup Banking Partnership for Koomin Deal – Reports
The South Korean crypto exchange Bithumb could shun its long-term banking partnership with NongHyup Bank in favor of a deal with rival bank Kookmin.
Multiple reports from outlets including Insight Korea and Mega Kyungjae quoted anonymous banking and crypto industry sources as claiming talks between Kookmin (KB) have successfully concluded.
Bithumb has partnered with NongHyup (NH) since 2018, when exchanges were legally obliged to seek banking partners.
Under South Korean law, only exchanges with real name-verified fiat on/off ramp bank accounts can offer fiat-crypto pairings.
In the past, exchanges and banks have signed long-term deals (one or two-year contracts). Bithumb has signed several one-year rolling contracts with NH.
However, NH’s most recent contract renewal saw it extend its Bithumb deal for just six months. This deal is due to expire on September 24.
Bithumb has insisted that “nothing has been decided yet,” and claimed that it could not comment further on the matter.
But media outlets said that Bithumb has already sent the relevant banking documentation to the financial regulator.
If regulators approve this documentation, a potential KB deal could be activated as early as late September.
The timing of the move will raise eyebrows in South Korea’s vibrant crypto community. This week, Bithumb announced a deal with NH that allows its customers to open crypto wallet-linked bank accounts via its exchange platform.
Bithumb has also unveiled positive financial results for the second quarter of the financial year.
Buoyed by the crypto bull market, the exchange posted a 639.2% increase in operating profits compared to FY2023 Q2. Its sales also increased 193.6% to KRW 242.9 billion ($180 million), Bloter reported.
Media outlets
Read more on cryptonews.com
