The South Korean crypto exchange Bithumb will let customers open NongHyup Bank accounts via its mobile app.
The move could be game-changing for the exchange. Customers previously had to visit bank branches in person to sign up for “real-name” bank accounts before opening wallets on the Bithumb platform.
Bithumb Enables Bank Account Opening: A ‘Game-changing’ Move?
News1 reported that on August 12, the exchange announced customers could start opening NongHyup (NH) Bank accounts for crypto trading via the exchange app and the mobile version of its website.
South Korean law stipulates that crypto exchanges must use real-name verified wallet-linked accounts if they want to offer their customers fiat trading options.
Customers thus had to download bank apps separately or visit bank branches in person if they wanted to open crypto accounts on Bithumb.
Instead, customers can now choose a “Link KRW Account” option on the Bithumb platform and “open a non-face-to-face bank account.”
Moon Seon-il, Bithumb’s General Manager of Services, was quoted as saying:
“Launching this non-face-to-face deposit/withdrawal account opening service lets us provide users with a more convenient environment for trading cryptoassets.”
Trading volumes on South Korea’s Bithumb crypto exchange over the past month. (Source: CoinGecko)
Upbit Rivalry Continues
Bithumb will hope the move helps it gain ground on its fiercest competitor, the trading platform Upbit.
Thanks to its own partnership with the neobank K Bank, Upbit was able to corner over 80% of the domestic crypto trading market in South Korea.
This dominance began during the coronavirus pandemic, a time when the government promoted non-face-to-face IT solutions.
Bithumb has since attempted to cut into Upbit’s market share by temporarily doing away with commission fees on transactions.
The exchange’s strategy saw it briefly surpass Upbit trading figures. It has since restored commission fees.
In July, the exchange was forced to make a u-turn on plans to increase its deposit usage fee rate to 4%.
Earlier this month, South Korean regulators said they were investigating a trader’s suspected attempt to manipulate the price of the altcoin AVAIL on Bithumb’s platform.
Meanwhile, media outlets say NongHyup, Bithumb’s long-term banking partner, remains keen on using NFTs to power its future business expansion.
Domestic banks are reportedly still keen on NFTs, even though two of South Korea’s biggest tech firms have recently shuttered their NFT arms.
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