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[Alpha Biz=(Chicago) Reporter Kim Jisun] Bithumb, the nation's second-largest virtual asset exchange, has faced difficulties in trying to replace banks affiliated with issuing real-name accounts. Although it tried to form a partnership with Kookmin Bank, it failed due to financial authorities' intervention.
According to financial authorities and banks on the 16th, Kookmin Bank informed Bithumb last week that it would not sign a contract to issue a real-name account. According to the Specific Financial Information Act, the virtual asset exchange must receive a real-name account from a commercial bank to operate the won market. Bithumb currently has a contract with Nonghyup Bank to issue a real-name account. This contract expires on the 24th of next month.
Bithumb sought to expand its customers through partnership with Kookmin Bank, which is strong in retail banking. Kookmin Bank also considered a contract with Bithumb to enter the new business. Shinhan Bank (Korbit), K-Bank (Upbit), Kakao Bank (Coinone), and Jeonbuk Bank (Gofax) are already affiliated with virtual asset exchanges. For Kookmin Bank, its partnership with Bithumb, the second-largest exchange, was an attractive option.
Nevertheless, Kookmin Bank stopped negotiating with Bithumb because of policy uncertainty. As the Virtual Asset User Protection Act went into effect in July and is set to report renewal of virtual asset operators in the second half of the year, it has been concluded that the situation will be watched further.
The financial authorities also expressed their negative intention to change Bithumb's affiliate banks.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
