Bithumb Finalizing Contract Extension Talks with NH Bank

Cryptocurrency exchange Bithumb is likely to reunite with its existing partner NH Bank as the South Korean bank to provide real-name accounts. It is understood that the deal with Kakao Bank, which had been considered as a new candidate, has actually fallen through. It is understood that the contract talks have broken down as Kakao Bank was concerned with various legal risks from Bithumb.

“From Kakao Bank’s perspective, the fee for providing real-name accounts is insignificant, amounting to less than KRW 10 billion per year, but the risk of being exposed to regulatory scrutiny such as anti-money laundering is greater if the contract is expanded to multiple crypto exchanges,” said an industry insider familiar with the matter.

Given that financial authorities are still keeping a close eye on crypto exchanges in Korea in terms of anti-money laundering (AML), some argue that renewing the agreement with NH Bank, one of the top five commercial banks, is the most “stable option” for Bithumb’s current situation.

While financial authorities have not recommended a “one-bank-one-exchange” principle for the crypto industry, the industry has seen this recommendation and believes it is risky from an administrative standpoint for banks to open real-name accounts on multiple exchanges.

If Bithumb and NH Bank successfully extend their contract, there will be no longer be any real-name accounts that are connected to Bithumb that need to be renewed or updated. This guarantees consistency and continuation of prior actions for users who have Bithumb accounts. Follow our blog posts to keep up with the most recent updates on developments and outcomes of Bithumb’s decision in partnering with a specific bank.

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