In a shocking move, Korbit and Bithumb announced that they will halt Kookmin Bank transactions by the end of the month. Although, the exchanges will be accepting transactions from Shinhan Banks, the second largest financial bank in Korea.
Kookmin Bank’s Decision
Kookmin Bank, the biggest financial institution in South Korea, has decided not to support cryptocurrency exchanges. Rather, it will provide virtual bank accounts to cryptocurrency investors. In South Korea, each trading investor will be provided with a Virtual Bank Account. This Virtual bank account can be used for withdrawing and depositing Korean Won, without having to directly move funds from and to actual bank accounts. Over the past few week, local investors were worried about the abrupt decision of Kookmin bank to close down virtual bank accounts. Many traders feared that other banks would follow the decision of Kookmin Bank. And will simply cut financial links to cryptocurrency exchanges. Earlier this week, Korbit told its users and traders that by the end of January, the exchange will begin accepting deposits and withdrawals from Shinhan Bank accounts instead of Kookmin Bank accounts.
The statement sent by Korbit to its users read: “As previously announced, in order to comply with the identification and anti-money laundering regulations being enforced by the government, the current KRW deposit method will be terminated by the end of January 2018.To use the new KRW deposit method, you must have a Shinhan Bank account registered under your legal name. Please use this time to create a banking account at Shinhan Bank. We will follow up with further instructions on how to input the new KRW withdrawal account information on Korbit.”
It’s Effect on Crypto Market
This move will help Korean Government’s idea to regulate, promote and accept Cryptocurrencies in the near future. Earlier, several local media had reported that the government is planning to allow financial institutions to list bitcoin futures. The government official said that listing of bitcoin futures will stabilize the market. And will also enable the bitcoin exchange market to mature.
In conclusion, considering the current market trend and Korean government’s decision to not impose a trading ban on short-term. Its suffice to say that South Korean cryptocurrency market is a fairly optimistic over the past few days. This is visible in the rising price and volumes of cryptocurrencies in both the South Korean and global market.