Korean Crypto Exchanges Paid $14.7M to Banks for Name Verification Services: Report

Exchanges have to set up partnerships with banks for real-name verification by Sept. 24.

Aug 10, 2021 at 11:25 a.m. UTC
Updated Sep 14, 2021 at 1:37 p.m. UTC

South Korean banks' revenue from real-name verification services to crypto exchanges more than doubled in the second quarter to 16.97 billion won (US$14.7 million), the Yonhap News Agency reported.

  • That's up from 7.55 billion won ($6.5 million) in the first quarter, Yonhap said, citing a Korean financial watchdog.
  • The increase indicates that Korean investors were still active despite a weak market, the news agency said.
  • In the second quarter, Korea's biggest crypto trading platform, Upbit, paid 12.07 billion won ($10.5 million) to online bank K-bank, Yonhap said.
  • Bithumb and Coinone have contracts with agricultural bank Nonghyup Bank, and Korbit with Shinhan Bank.
  • Exchanges have until Sept. 24 to register with Korea's Financial Intelligence Unit or be shut down. In order to register, they must fulfill certain requirements, including partnerships with banks for real-name registration and approval for their "know-your-customer" processes.
  • Major banks are reportedly reluctant to provide such services to crypto exchanges because of potential accountability risks.
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