The prices of Bitcoin and other cryptocurrencies are displayed on a screen at the Bithumb Lounge in Gangnam District, southern Seoul, Jan. 7. Yonhap
Bithumb, the second-largest cryptocurrency exchange by trading volume in Korea, will change its real-name deposit and withdrawal service partner from NH NongHyup Bank to KB Kookmin Bank in March as part of measures to expand its market share, the exchange announced, Monday.
According to industry officials, the Financial Intelligence Unit (FIU) under the Financial Services Commission, the country's financial watchdog, recently approved Bithumb's application to select a new partner bank.
The exchange submitted such an application to the FIU to prevent any service disruptions, as its partnership with NongHyup Bank is set to end on March 23.
Consequently, starting 11 a.m. on March 24, investors who wish to trade virtual assets on Bithumb will need to open accounts with Kookmin Bank and link their accounts with the exchange.
Users of cryptocurrency exchanges must open a real-name deposit and withdrawal account at a partner bank to trade virtual assets in Korean won.
"Preregistration for account linking with Kookmin Bank will begin at 9 a.m. on Jan. 20, and detailed information and procedures will be provided through a separate announcement," a Bithumb official said.
"To ensure smooth service usage after 11 a.m. on March 24, additional procedures, such as registering a new bank account, will be required."
Bithumb has maintained a partnership with NongHyup since 2018, but has been working to change its partner bank since last year.
Through a new partnership with Kookmin Bank, the exchange aims to expand its market share by attracting a younger customer base.
Additionally, the financial authorities' move to gradually allow corporate accounts is another key reason behind the change in its partner bank, based on the belief that Kookmin Bank would provide a more advantageous position in narrowing the gap with Upbit.
Currently ranked second after Upbit, Bithumb has been preparing strategies to aggressively operate in the anticipated new market with the approval of corporate accounts through plans such as establishing a new corporate sales team.
"I express my deep gratitude to Nonghyup Bank for the long-standing partnership," Bithumb CEO Lee Jae-won said.
"We have made thorough preparations to provide stable services to users by closely cooperating with financial authorities and banks. Moving forward, both companies will do the best to ensure the healthy and stable growth of the virtual asset market."
Meanwhile, other major banks are reportedly in behind-the-scenes discussions with cryptocurrency exchanges.
Among the four major banks in the country — Kookmin, Shinhan, Hana and Woori — only Shinhan Bank currently has a partnership with another cryptocurrency exchange, Korbit.