EXCHANGES
South Korean Banks Profit from Supplying Virtual Account Services to Exchanges

2018-01-20 23:58:32
by Saffron Weale
img
South Korean Banks Profit from Supplying Virtual Account Services to Exchanges

Data supplied by the South Korean Financial Supervisory Service has shown that the country's banks have been earning commission by providing virtual account services to crypto coin exchanges. In 2017, banks made a massive 36 times more in commission by providing these services than they did in 2016.


This data also includes the six banks, Nonghyup Bank, KB Kookmin Bank, Korea Development Bank, Industrial Bank of Korea, Woori Bank and Shinhan Bank, which the South Korean government ordered to be inspected by financial regulators. The total profits made by these banks was $2.1 million. 


The banks make these incredible profits by charging cryptocurrency exchanges such as Bithumb, Korbit, Upbit, and Kakao Talk a small fee every time a customer made a deposit. These fees are often passed on to the customers by the exchanges in the form of withdrawal fees.


The South Korean government has ordered banks to stop opening new virtual accounts to customers until anti-money laundering and know-your-customer protocols are in place. Banks will now be compelled to record the source of the funds which are used for cryptocurrency investments and to check the customer's purpose of trading. It remains to be seen if the government will enact further crackdowns on cryptocurrencies.

Similar News
img
NEWS
How SEW Capital Unlocks Funding Potential for Blockchain Startups
2025-01-16 15:52:13 | by Scan Team

The blockchain industry has grown exponentially, disrupting traditional markets and creating new opportunities for innovation.

More
img
NEWS
UAE's $40 Billion Bitcoin Hoard: Crypto Hub of the Future!
2024-12-28 17:24:29 | by Scan Team

The UAE has amassed $40 billion in Bitcoin, solidifying its ambition to become a global cryptocurrency hub.

More
img
NEWS
Craig Wright sentenced to 12 months in prison, suspended for two years
2024-12-26 16:56:13 | by Scan Team

Australian Computer Scientist Craig Wright Found in Contempt by UK High Court

More
img
NEWS
MicroStrategy Expands Bitcoin Holdings to 444,262 BTC Amid Equity Sales Concerns
2024-12-25 18:12:53 | by Scan Team

In a bold move reinforcing its commitment to cryptocurrency, MicroStrategy announced the acquisition of 5,262 bitcoins for $561 million, elevating its total Bitcoin holdings to an impressive 444,262 BTC, valued at approximately $42.1 billion.

More