Digital Banking

South Korean Banks to 'reassess' cryptocurrency contracts

Image via iStock.com

June 23, 2021

South Korean banks are currently reexamining partnerships with cryptocurrency exchanges to see if they will keep or drop the contracts. Currently, only Bithump, Upbit, Coinone and Korbit have partnerships with banks, according to a report by Coindesk.

Part of this reassessment may be driven by upcoming regulations. The South Korean Financial Transactions Reports Act will require all cryptocurrency exchanges to register with financial authorities by Sept. 24.

Once this happens, the FSC will scrutinize them and their bank partners more closely. It will monitor the banks to make sure that know-your-customer and anti-money-laundering protocols are being enforced. Banks naturally want to check their partnerships first to see if this government oversight will be worth it to keep the cryptocurrency exchanges on.