Digital Bank “KakaoBank” announced some important details about its plan to step into the crypto industry.
KakaoBank Corp is a South Korean mobile-only digital bank and also it is a financial tech company. The company was established in 2016 by Korea Investment Holdings and Kakao Corp. Shortly, KakaoBank may enter the crypto & blockchain industry but it will be a matter of time.
On 3 May, KakaoBank talked about its future possibilities to contribute to the crypto industry, during the quarterly business performance conference.
Yun Ho-young, CEO of KakaoBank, said that majority of the people are moving toward crypto assets-based investment, so Bank will figure out the possibilities, where it can contribute to the crypto-related services with its resources to make the crypto-related business favorable to the customers.
“As (crypto) is considered a major asset amongst customers, we are reviewing how we can provide virtual assets in services or the form of a business in a favorable light.”
At present, under the South Korean crypto regulatory provisions, all the crypto exchanges needed to have a direct partnership with the Banks to ensure the real-name deposit and withdrawal accounts, to provide crypto to fiat deposit & withdrawal services. So maybe the Bank may bring its partnership with other crypto exchanges, to bring better competition among the crypto exchanges to provide better services.
Recent reports noted that KakaoBank was in talk with the Coinone crypto exchange but this digital bank denies such reports.
Few experts noted that KakaoBank will create a better competition against neobank K Bank. In 2020, Neobank established a partnership with Upbit crypto exchange, and after that bank grabbed around three times more customers, which are using its banking services actively.
Right now, KakaoBank holds around 18 Million users and this figure makes this Bank a leading digital bank in South Korea. In the first quarter of 2022, KakaoBank generated around 88.4 billion KRW, which is a 64% high growth year-over-year growth.