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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.