Banks Checking Reliability and Security of Exchanges

K Bank, Shinhan Bank and NH Bank have extended their contracts with the four major cryptocurrency exchanges until Sept. 24.

UPbit, Bithumb, Coinone and Korbit and K Bank, Shinhan Bank and NH Bank extended their contracts until Sept. 24 with regard to real-name account issuance for those using the major cryptocurrency exchanges.

In order to keep doing business, the exchanges must report themselves to the Korea Financial Intelligence Unit by that date with the Information Security Management System (ISMS) certificate and real-name accounts. The banks are currently checking the reliability and security of the exchanges, and contract renewal hinges on the result of the screening.

At present, K Bank is in partnership with UPbit, Shinhan Bank is in partnership with Korbit, and NH Bank is in partnership with Bithumb and Coinone. Previously, the contracts were renewed every six months. The contract of UPbit was renewed late last month and those of the other three are scheduled to expire at the end of this month before renewal until Sep. 24.

The banks are currently hesitating to extend the contracts although they are looking into the exchanges. This is because they must share the responsibility in the event of, for example, money laundering at the exchanges whereas the partnership contributes little to their profits.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution