Kakao’s Arm Strikes Real-name Banking Deal with Coinone Crypto Exchange
Kakao Bank, the biggest neobank in South Korea and an offshoot of the internet giant Kakao, has confirmed it has sealed a partnership deal that will see it provide real-name banking services for customers of the crypto exchange Coinone.
The deal finally puts an end to months of speculation surrounding the deal. It also sees a second neobank enter the space – following the success of its rival K-Bank’s own partnership with the Coinone rival Upbit.
K-Bank, which was created by the KT Corporation business empire, has seen account numbers balloon as a result of its Upbit deal, which requires all Upbit users to conduct their operations via a social security number-verified K-Bank account.
The neobank-crypto exchange partnership has been touted as a golden ticket for crypto firms and banks alike. With K-Bank, Upbit customers have been able to open accounts online, rather than having to visit brick-and-mortar bank branches, as has been the case with all four of Upbit’s biggest rival exchanges.
The partnership has seen Upbit swallow up the lion’s share of the South Korean crypto market in recent years, leaving the likes of Coinone, Korbit, and the former market leader Bithumb in the dust.
Coinone currently has an existing banking deal in place with the traditional finance provider Nonghyup Bank (NH). This has meant that customers using Coinone’s platform have had to make KRW deposits and withdrawals via NH accounts.
But, the news agency Yonhap noted, that this deal’s days could be numbered. Per the report, financial regulators are “negative” about the idea of a crypto exchange “forming real-name account partnerships with two or more banks, so Coinone is expected to terminate its contract with Nonghyup Bank.”
This would be a blow to
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