Three South Korean Banks providing real-name accounts for cryptocurrency exchanges saw more than double in crypto transaction fee revenue during the second quarter filings of 2021, as compared to the first-quarter earnings.
According to data received from the Financial Supervisory Service by Rep. Yoon Chang-Hyeon, a member of the National Assembly’s Political Affairs Committee; K bank, NH Nonghyup Bank, and Shinban Bank accumulated 16.9 billion Won, i.e., $14.71 million in transaction fee from four crypto exchanges combined: Upbit, Bithumb, Coinone, and Korbit.
While first-quarter recorded just 7 billion Won. The mass revenue collection has come despite the constant decline in Bitcoin (BTC) price from above 80 million won in April to below 40 million won in June.
“Compared to the beginning of the year, the number of accounts has increased five-fold and the balance of deposits has quadrupled, and the coin craze has not yet ended, with Bitcoin prices recently surging again,” Yoon told local news.
Korean Banks Revenue Grew Despite Regulatory Clampdowns
Chronologically, K Bank stood at the top with 12 billion Won in the second quarter, as compared to 5.2 billion Won in the first quarter. It has partnered with Upbit, the country’s largest cryptocurrency exchange.
NH Nonghyup Bank collected 3.13 billion won in the second quarter from the Bithumb crypto exchange, as compared to 1.3 billion won in the first quarter. Additionally, it also made 1.45 billion Won in the second quarter from the Coinone exchange, compared to the minimal amount of 333 million Won in the first quarter. Even after partnering with two virtual asset exchanges, NH Nonghyup combined revenue from transaction fees was still less than KBank’s exceptional performance with its exchange partner.
Lastly, Shinhan Bank reported only 343 million Won in its second-quarter collection from transaction fees, in partnership with Korbit crypto exchange. However, it still saw a rise from its early earnings of 175 million Won in the first quarter.
South Korean crypto regulations
South Korea’s crypto regulations are closing in on exchanges with every passing day. Last month, over 27 foreign cryptocurrency exchanges with business operations in Korea were notified by the Korea Financial Intelligence Unit (KFIU) to register with it, in accordance with the latest Korean AML regulations.
Crypto exchanges are also required to acquire a certificate in information security from the regulators. Meanwhile, South Korea has also proposed the latest tax regulations to debunk tax evaders using cryptocurrency. The regulators seek to get permission for tax authorities to impound crypto assets that are stored away by tax evaders in individual wallets.