South Korean banks doubled their revenues from crypto transaction fees in the second quarter

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Three South Korean banks with crypto exchange partnerships reportedly realized $ 14.71 million in transaction fees in the second quarter of 2021.

According to the Korea Herald, Shinban Bank, K bank and NH Nonghyup Bank reported total revenue of 16.9 billion South Korean won in the second quarter.

The Big Four Crypto Exchanges in South Korea Upbit, Bithumb, Coinone and Korbit have teamed up with the banks to search for real-name user accounts.

Based on data collected by Yun Chang-hyun, second quarter performance topped the $ 6.8 million (7 billion won) mark in the first quarter, more than doubling transactions despite continued fluctuations of the market.

Data shows that K Banks’ partnership with Upbit generated the largest share of $ 10.4 million (12 billion won), or more than 71% of total revenue. In the first quarter, the bank made 5.2 billion won from the crypto exchange partnership.

NH Nonghyups’ two-way partnership with Bithumb and Coinone was not as impressive as the revenues of K Banks. With Bithumb, the bank reported a profit of about $ 2.6 million (3.1 billion won) in second quarter, while Coinone contributed $ 1.5 million (1.78 billion won) throughout the year.

The Shinhan BankKorbit partnership posted the lowest profit of nearly $ 0.3 million last quarter.

Chang-hyun pointed out that the South Korean market has quintupled the number of user accounts this year alone, adding:

Compared to the start of the year, the deposit balance has quadrupled and the coin craze is not over yet, as Bitcoin prices have recently increased further.

Comparing the total amount of deposits allocated to real name accounts for crypto trading, South Korea saw an increase of 316%, increasing the investment from $ 1.47 billion in 2020 (1, 7 trillion won) to $ 6.14 billion (7.08 trillion won) at the end. July 2021.

Related: South Korea To Take Action Against Unregistered Crypto Exchanges

South Korean regulators recently issued a warning to crypto exchanges to voluntarily register with local authorities by September 24. The warning has been issued to all crypto exchanges that use the Korean language, Korean won, or serve the Korean market.

The punishment for entities that do not follow suit will carry a prison sentence of up to five years or a fine of up to $ 43,500 (50 million won).

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