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Three of South Korea’s most major cryptocurrency exchanges, Bithumb, Coinone, and Korbit, have finally passed the country’s regulatory requirements and struck agreements with banks before the September 24 deadline.
The same was first revealed by an official from NongHyup Bank. According to the exec, banks have agreed to extend the deal to issue real-name accounts for crypto-traders of Bithumb and Coinone exchanges.
The deals of the two exchanges were set to terminate on 24 September. However, with the banks now finally in agreement, exchanges will be able to complete their registration with the country’s financial authorities before the deadline.
However, the final preparations have yet to be finalised. Nonetheless, the banking official stated that it will supply exchanges with the documentation required to finish their contracts.
Traditionally, these contracts were renewed every six months. However, the banks declined to reveal the terms of the most recent contracts.
In the meantime, Shinhan Bank, like NongHyup Bank, stated its intention to open real-name accounts for Korbit merchants. However, the bank was keen to point out that confirmation does not imply that the contract with the crypto-exchange has been extended.
According to the same, the document has been issued to allow the exchange to go ahead with its registration process. A spokesperson reportedly added,
“Whether we are extending the partnership will be announced before the Sept. 24 deadline, but for now we are holding that off for later.”
If the exchange registers with the Financial Services Commission [FSC], the bank may prolong its relationship with Korbit. In terms of the exchange, it hinted that the announcement could come “at the last minute.”
The Korea Internet and Security Agency has now granted banking support and an Information Security Management System [ISMS] accreditation to the top four bitcoin exchanges in South Korea. Although many other small exchanges received the ISMS certificate, they have been let down by banks and are facing a shutdown as the procedure deadline approaches.