Bithumb’s Bank Switch Under Review by South Korean Regulator

The Financial Intelligence Unit (FIU) of South Korea’s Financial Services Commission (FSC) is currently assessing Bithumb’s proposal to change its real-name account partner bank. Even so, Bithumb has submitted draft data for renewing its Virtual Asset Service Provider (VASP) license, which includes the potential switch from NH Nonghyup Bank to KB Kookmin Bank.

An FIU official stated that the review of Bithumb’s request is still in progress, and no final decision has been reached. The crypto exchange is actively engaging in discussions with financial authorities, but no conclusions have been drawn yet.

A Bithumb representative echoed this, confirming that discussions with authorities are ongoing. The official noted that talks about converting to real-name accounts are still underway, and no decisions have been made yet.

Read also: South Korea’s FSS Initiates On-Site Inspections of Crypto Exchanges

Bithumb’s User Base Unaffected by Potential Switch

Contrary to earlier reports suggesting that Bithumb’s attempt to change its banking partner was blocked, the FIU clarified that this interpretation is inaccurate.

Some speculated that the authorities were concerned about managing the existing users who opened accounts through NH Nonghyup Bank, but the FIU explained that this is not the case. The sensitive nature of the issue has led the FIU to avoid expressing its opinion publicly.

At present, leading crypto asset exchanges such as Upbit, Korbit, and GOPAX have established partnerships with K Bank, Shinhan Bank, and Jeonbuk Bank, respectively. Bithumb’s current partner, NH Nonghyup Bank, previously allowed Coinone to change its banking partner to Kakao Bank in 2022.

Read also: South Korea Probes Upbit, Exchanges Under New Crypto Laws

Alongside Bithumb’s ongoing discussions, NH Nonghyup Bank has stated that it generally does not disclose details regarding its contract renewals with crypto exchanges. This includes information such as whether the contract will be extended or the duration of the contract.

Adding to this sentiment, there were reports that South Korea’s Financial Supervisory Service (FSS) is preparing to begin on-site inspections of crypto asset exchanges, with Bithumb being the first platform to be examined.