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KB Kookmin Bank |
[Alpha Biz= Paul Lee] Bithumb, a major cryptocurrency exchange, has initiated a partnership with KB Kookmin Bank for KRW deposit and withdrawal services starting from the 24th. This change in Bithumb's banking partner has sparked attention regarding the competition for market share among domestic exchanges.
According to financial industry sources, from today, customers wishing to deposit or withdraw funds for cryptocurrency trading on Bithumb will need to use a KB Kookmin Bank account. This follows the shift from NH Nonghyup Bank to KB Kookmin Bank as Bithumb's partner.
Bithumb began pre-registering KB Kookmin Bank accounts for its users on January 20 and recently opened a new account opening counter at Bithumb Lounge in Gangnam on March 18. The company also hosted an event offering up to 10 billion KRW in rewards, distributed differently depending on the order of registration and event participation.
Bithumb hopes that this new partnership will attract additional customers, particularly since there are more potential investors with KB Kookmin Bank accounts compared to NH Nonghyup Bank.
The shift in Bithumb’s banking partner is closely watched in the industry. The key question is whether Bithumb can increase its market share, which has been hovering around 20-30%, and catch up to its competitors. There is a precedent for this shift's effect, as Upbit solidified its position as the top exchange after switching its banking partner from IBK Industrial Bank to K-Bank in June 2020.
Meanwhile, Korbit, another major exchange, has strengthened its collaboration with its banking partner, Shinhan Bank, launching an event where the first 1,000 users who sign up and use Shinhan's authentication will receive a 5,000 KRW reward by April 21.
The banking sector is also watching the synergy between KB Kookmin Bank and Bithumb. Since Bithumb’s pre-registration began, there has been a noticeable increase in the opening of KB Kookmin Bank's demand deposit accounts. This could potentially lead to the development of new cryptocurrency investment products by KB Kookmin Bank in collaboration with Bithumb.
The partnership may influence the cryptocurrency market strategies of other major banks, such as Hana Bank and Woori Bank, who have yet to establish partnerships with crypto exchanges.
However, some analysts believe that the impact of this partnership may be limited.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
