Korea's KB Kookmin Bank Extends Partnership with Bithumb for a Full Year

Korea's KB Kookmin Bank has extended its real-name account partnership with Bithumb by a full year, ending speculation that the bank might cut ties after a series of incidents involving the exchange. The six-month contract renewal imposed in February was seen as a cautious move due to a system error during a promotional event and an ongoing police investigation into allegations connected to employment solicitation.

However, since then, KB Kookmin conducted an on-site audit of Bithumb's anti-money laundering framework and internal controls. The bank cited measurable deposit growth tied to the partnership as a reason for renewing the contract without changes.

This renewal is seen as a positive sign for Korea's crypto banking sector, which has been operating under a real-name account system since its inception. Other major exchanges, such as Kakao Bank and Korbit, have also renewed their partnerships with Coinone and Shinhan Bank respectively. The future of Upbit's partnership with K Bank remains uncertain.

The delayed Digital Asset Act, which aims to formalize crypto regulation in South Korea, has given the current system time to stabilize, but it may lead to a fresh round of adjustments for exchanges and their banking partners when the legislation is finally implemented.