South Korean crypto traders sent $58B to exchanges last quarter

South Korean crypto traders are sending more cash from their bank accounts to crypto exchanges than last year, and banks are raking in commissions.

South Korean crypto traders sent at least 64 trillion won ($57.9 billion) from their bank accounts to crypto exchanges last quarter, reports Korea JoongAng Daily.

That’s 74% more than all of 2020 — when South Koreans sent 37 trillion won ($33.3 billion) from their banks to crypto trading platforms.

Those figures relate to accounts registered to internet-only K Bank, Shinhan Bank, and NongHyup Bank.

South Korean crypto traders last quarter nearly doubled the funds sent to crypto exchanges in all of 2020.

The outlet noted that South Korean banks earned commissions on that money, citing data by the country’s Financial Supervisory Service (equivalent to the SEC).

K Bank reportedly raked in around 5 billion won in commissions ($4.5 million) last quarter — all from crypto exchange Upbit.

  • Korea JoongAng Daily said that was nearly 10 times the commission K Bank earned in 2020’s fourth quarter.
  • Shinhan Bank made 145 million won ($130,000) from Korbit in the same period (up 806% YoY). 
  • NongHyup Bank generated 1.6 billion won ($1.47 million) from Bithumb and Coinone (275% and 397% respective growth YoY).
K Bank collected far more commissions on crypto traders than the others.

[Read more: South Korean bank group warns exchanges over altcoins as traders snub Bitcoin]

Despite these figures, local banks reportedly aren’t all that interested in signing new partnerships with more crypto exchanges.

Recent government regulations have forced crypto platforms to ensure every user has corresponding ‘real name’ bank accounts before the end of August.

The new rules have put smaller crypto exchanges in jeopardy. If they can’t find appropriate banking partners, reports indicate they may need to close up shop.

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