Bithumb, one of South Korea’s leading cryptocurrency exchanges, has announced a strategic partnership with KB Kookmin Bank, effective March 24, 2025. This partnership replaces its existing relationship with NH Nonghyup Bank, aligning with regulatory demands and signaling a shift aimed at attracting younger and institutional investors.
Under South Korea’s “one company, one bank” policy, digital asset exchanges must partner with a designated bank to facilitate real-name account services. Here, Bithumb aims to strengthen its market position by cooperating with one of South Korea’s largest commercial banks, KB Kookmin Bank. This decision comes due to some challenges experienced with NH Nonghyup Bank, such as accommodation of accounts management challenges.
Key Details of the Transition
The transition process comprises pre-registration from January 20 to March 24, 2025, during which users must connect their KB Kookmin Bank accounts with Bithumb’s trading platform to proceed to the next phase. The users can anonymously use their NH Nonghyup Bank accounts for deposits and withdrawals until March 23. However, services may be limited, and those not pre-registered must do so before the deadline. This step would guarantee continuity with little interruption for customers when they move to using KB Kookmin Bank.
As part of the new partnership, the companies agreed to enhance onboarding procedures and streamline the deposit and withdrawal services. Bithumb believes that these improvements are well-liked among the Millennials and Generation Z customers, who comprise approximately 60% of the actual cryptocurrency exchange customers. This is also seen in the agreement with KB Kookmin Bank, which is part of the growing partnership between exchanges and other commercial banks to bring about change to fit emerging customer needs.
Competitive Implications and Market Impact
This move positions Bithumb to compete more effectively with Upbit, South Korea’s largest crypto exchange. KB Kookmin Bank’s robust infrastructure, extensive branch network, and appeal to younger demographics give Bithumb a competitive edge. KB Kookmin Bank’s expertise in institutional banking is expected to attract corporate investments, further boosting Bithumb’s market influence.
The partnership mirrors similar strategies in the industry, as demonstrated by Coinone’s switch to Kakao Bank in 2024, which resulted in a 120% surge in new user registrations. Bithumb anticipates a similar outcome as it works to broaden its customer base and improve operational efficiency.
Conclusion
Bithumb’s transition to KB Kookmin Bank marks a significant development in South Korea’s cryptocurrency market. By addressing past challenges and leveraging KB Kookmin Bank’s resources, Bithumb aims to solidify its position and adapt to the rapidly evolving digital asset landscape. This partnership underscores the growing collaboration between cryptocurrency exchanges and commercial banks in South Korea’s regulated market environment.
Also Read: South Korea’s Crypto Market Booms as Investor Activity and Holdings Surge
