KakaoBank to Provide Deposit and Withdrawal Services for Coinone Users

The Partnership Between KakaoBank and Coinone

South Korea’s online-only bank, KakaoBank, has announced a partnership with cryptocurrency exchange Coinone to provide deposit and withdrawal accounts for users. This collaboration, revealed in August, will go live in November, enabling seamless transactions for crypto traders.

Regulatory Compliance and Stability

The partnership aligns with South Korea’s financial regulations, which mandate cryptocurrency exchanges to partner with local banks and obtain an Information Security Management System (ISMS) certificate. This ensures compliance and adds stability to virtual asset trading.

Transition from NH Nonghyup Bank

Coinone will transition its banking services from NH Nonghyup Bank, with whom it has had a contract since September 2021. While the exchange has not confirmed whether existing users will need to set up new accounts with KakaoBank, users can expect updates on the transition soon.

Enhanced Transaction Limits

Coinone is reportedly planning to increase its online withdrawal and deposit limits. Currently, the exchange processes up to 1 million Korean Won via its “easy deposit” feature, but this may expand to match competitors like Upbit, which allows daily deposits of up to 100 million Korean Won through its partnership with K-Bank.

Competitive Landscape in South Korea’s Crypto Market

The move by KakaoBank and Coinone reflects the growing competition in South Korea’s cryptocurrency market. Major exchanges like Upbit, which collaborates with K-Bank, are already offering high transaction limits, setting a benchmark for others to follow.

This partnership underscores KakaoBank’s commitment to supporting the growing demand for cryptocurrency services while ensuring regulatory compliance.