Despite the prolonged sell-off in the crypto market that has continued to put pressure on the prices of digital assets, institutional adoptions are still in full swing. According to reports, South Korea’s leading internet-only bank KakaoBank has entered into a contract with Coinone, a local crypto exchange. The partnership between both providers will see KakaoBank provide withdrawal and deposit accounts to Coinone investors using their real names.
While both parties have reached a concrete deal, it isn’t clear when Kakao will start providing bank accounts to Coinone investors.
Although the partnership between KakaoBank and Coinone is a step in the right direction, especially considering the lack of regulation in the crypto space, this isn’t going to be the first time Coinone is entering such a strategic partnership. In September last year, the exchange partnered with NH Nonghyup Bank to provide a real name bank account.
Meanwhile, the NH Nonghyup Bank also provides bank accounts for Bithumb, another very popular local exchange in South Korea.
Coinone and its growing relevance in the South Korean crypto space
Even though several cryptocurrency exchanges are operating in South Korea, Coinone has managed to stay in the spotlight for the right reasons. While local regulations guide the exchange activities, Coinone has brokered strategic partnerships that have given it an edge. Coinone is the only exchange in South Korea offering two bank-hosted accounts to its users. Despite suggestions that the exchange may have to terminate its partnership with the NH Nonghyup Banks, there hasn’t been any concrete evidence to back the rumor.
Since the government mandated local cryptocurrency exchanges operating in the country to acquire bank contracts, Coinone has surpassed other exchanges following its partnership with two of the country’s leading financial institutions. The government believes the action will reduce the risks of financial crime.
Only exchanges that have successfully fulfilled the government’s mandate are allowed to provide cash to crypto services. Since the government required exchanges operating in the country to make the transition, only five exchanges, including Coinone, Upbit, Korbit, Bithumb, and Gopax, have met the requirements.