KakaoBank reportedly building ties with cryptocurrency exchange firms

KakaoBank is mulling to get into the cryptocurrency business. Thus, it is reportedly forming ties with crypto exchanges for a possible partnership. The bank plans to enter the digital currency industry through this collaboration with crypto operators.

As per The Korea Times, the web-based South Korean bank is leaving its doors open for any possibilities before going for a more solid step for its branching out to a new industry. It was noted that this move just shows there is a growing demand for digital currency business in the country and overseas.

Market insiders also pointed out that KakaoBank’s young and innovative identity increases the likelihood of its alliance and collaboration with any of the crypto exchanges operating locally.

They can easily see the company’s ties to crypto firms in the future as it is one of the emerging brands as well that is being patronized by the new generation.

"KakaoBank is positively reviewing plans on how we will be able to launch crypto-related services or businesses, as more customers identify crypto assets as a major financial investment area," Yoon Ho Young, KakaoBank’s chief executive officer, said at a recent company conference call.

All crypto exchange firms in South Korea are required to sign a business contract with a commercial bank to be able to operate, and so far, only five crypto exchanges have been able to meet this requirement, and these are Bithumb, Upbit, Coinone, Korbit, and Gopax. This was required so it would be easy to identify and authenticate users since they must input their real names when opening a bank account to use crypto exchanges.

In any case, KakaoBank reached 18.61 million customers in March, and this number has shown an increase of 620,000 compared to the end of 2021. If it succeeds in its crypto business, it is predicted to attract more customers.

"Kakao has indirectly collaborated with Upbit, and holds expertise in the trendy tech area," a crypto business insider stated. “It will not be that hard for any Kakao subsidiary to launch crypto-related services thanks to its tech agility.”