South Korean banks have been providing virtual account services to cryptocurrency exchanges and earning commissions from them. According to data obtained by the country’s Financial Supervisory Service, banks made 36 times more in commission income from crypto exchanges last year than the previous year.
Banks Earned 36x More From Crypto Accounts
The Korean Financial Supervisory Service (FSS) has obtained data from banks relating to their virtual account services to crypto exchanges. It includes data from the six banks inspected by the regulators last week: Woori Bank, KB Kookmin Bank, Shinhan Bank, Nonghyup Bank, Korea Development Bank, and Industrial Bank of Korea.
The agency revealed on Thursday that the total commission income banks earned from these services last year was 2.221 billion won (~USD$2.1 million), which is 36 times more than the 61 million won earned the previous year, Yonhap reported.
Upbit’s Bank Tops the List
Banks make money from cryptocurrency exchanges by charging them approximately 200 to 300 won per customer deposit, the news outlet detailed, adding that crypto traders pay higher commissions to the exchanges when withdrawing funds.
According to the FSS, the Industrial Bank of Korea earned the most from virtual account services last year. The bank provides these services to Upbit, which has recently become the world’s largest exchange by volume. Upbit is backed by Kakao Corp, the operator of South Korea’s most popular chat app, Kakao Talk. The bank “earned a total of 675 million won by setting a virtual account fee of 300 won per deposit,” the publication conveyed…