- South Korea’s KakaoBank to provide accounts for local Coinone users.
- KakaoBank CSO said the bank will enable access to virtual asset trading for Coinone customers.
- The partnership was announced in August and the feature will be live in November
South Korea’s online-only KakaoBank which services almost 20 million users, announced in a recent earnings call that the bank will enable withdrawal and deposit accounts for local customers of cryptocurrency exchange Coinone, starting in November.
KakaoBank’s chief strategy officer (CSO) Kim Seok shared this news with the local media outlet Newsis in South Korea. In the statement, the CSO states:
[KakaoBank] is in talks to provide verified real-name deposit and withdrawal account service to Coinone customers in November in order to provide stability and convenience to virtual asset trading.
While the companies made their partnership public in August 2022, the facility was made live in November. South Korea’s Act on Reporting and Use of Certain Financial Transaction Information necessitates South Korean cryptocurrency exchanges to possess an Information Security Management System (ISMS) certificate, and partner with local banks to create withdrawal and deposit bank accounts for exchange users under their legal name.
With the beginning of its partnership with the KakaoBank, Coinone is to end its contract with the Korean NH Nonghyup Bank dating back to September 2021, according to local media.
Coinone is also expected to soon share an announcement on the impact this transition will have on the users. However, the exchange refused to answer if existing customers with NH Nonghyup accounts will need to go through the account set up process all over again with KakaoBank.
Moreover, Coinone reportedly plans to increase the limit on online withdrawals and deposits, as per the South Korean media platform Asia Today. Currently, the exchange processes 1 million Korean Won via the “easy deposit” feature.
Meanwhile, the leading cryptocurrency exchange in the country Upbit allows daily deposits of up to 1 hundred million Korean Won. Upbit is collaborating with online-only K-Bank to power accounts for their crypto exchange users.