Banks expanding earnings from crypto commission returns

Banks expanding earnings from crypto commission returns

gettyimagesbank

By Lee Min-hyung

Korean banks are expanding their commission profits by offering real-name bank accounts for their affiliated crypto exchanges. With large-cap cryptocurrencies showing signs of a strong rebound, sources said that the banks will see more profits in the third quarter of this year.

For now, three lenders ― Shinhan Bank, NongHyup Bank and K Bank ― have signed partnerships with four local crypto exchanges, allowing users of the operators to engage stably in crypto trading even after a new cryptocurrency regulation takes effect next month.

The banks had so far ended up gaining slight commission returns through the partnerships, placing emphasis on generating marketing effects by gesturing to investors that they are friendly to the emerging crypto market.

But with the pandemic-era liquidity continuing to flow into the crypto market, banks are on track to reap more meaningful commission profits. According to data from the Financial Supervisory Service, the three lenders raked in commission profits worth 16.9 billion won ($14.45 million) in the second quarter of this year, up by more than 140 percent from a quarter earlier.

K Bank, partnered with Upbit, was the biggest beneficiary, receiving 12 billion won in commissions. NongHyup and Shinhan followed the list by earning some 4.55 billion won and 343 million won, respectively, during the April-June period.

Industry sources said that their commission profits will continue to rise in the third quarter on signs of a rebound in some major cryptocurrencies. The introduction of the Special Financial Transaction Information Act next month will also help expand the exchanges’ presence in the local crypto market, so chances are the banks will widen their commission profits at least until the end of this year, according to the sources.

“Most banks ― excluding the three lenders ― have remained reluctant to sign any partnerships with crypto exchanges, as they may be exposed to risks from possible cyberattacks that could occur during crypto trading,” a bank industry source said. “But more banks will likely jump into the market if the crypto-affiliated banks continue to achieve stable growth in commission returns and if they are not mired in any big security scandals.”

Since last month, the prices of major cryptocurrencies ― such as Bitcoin ― have been on a strong rally. According to data from Upbit, the Seoul-based crypto exchange, the Bitcoin price soared by more than 40 percent as of Friday, compared to the price on July 20. The Ethereum price also surged over 70 percent during the same period.

“The crypto market is regaining momentum for a rebound and banks’ third-quarter commission profits are also widely expected to rise, based on the ongoing rally of the major cryptocurrencies,” another source from the financial industry said.

Internet Explorer Channel Network
News Related

OTHER NEWS

Air Force chief meets with US officials ahead of major defense exhibition

(Yonhap)South Korean Air Force Chief of Staff Gen. Park In-ho met with a delegation of senior US military and defense officials in Seoul on Monday to discuss bilateral cooperation ahead ... Read more »

S. Korea voices concern over Japan's Fukushima water release plan

This photo, provided by South Korea’s foreign ministry, shows Ham Sang-wook (L), Seoul’s deputy foreign minister for multilateral affairs, speaking with Rafael Grossi (R), director general of the International Atomic ... Read more »

BTS agency to host global audition to recruit talent

Courtesy of Big Hit Music Big Hit Music, the K-pop agency behind BTS and Tomorrow X Together, said Monday it will throw a global audition to launch a next-generation boy ... Read more »

Moon orders plan for booster shots for people who receive J&J COVID-19 vaccine

President Moon Jae-in is administered a COVID-19 vaccine booster shot at the National Medical Center in Seoul last Friday. (Yonhap)President Moon Jae-in on Monday ordered officials to swiftly set up ... Read more »

POSCO chief to lead World Steel Association for 3 years

By Kim Hyun-bin POSCO Group Chairman Choi Jeong-woo has been appointed to be part of the executive board of directors for the World Steel Association, and is scheduled to become ... Read more »

S. Korean, US, Japanese intelligence chiefs to discuss N. Korea in Seoul: source

These file photos from May 9, 2021, show, from left to right, Avril Haines, the US director of national intelligence; Park Jie-won, head of South Korea’s National Intelligence Service; and ... Read more »

Market LIVE Updates: SGX Nifty indicates a flat to positive start for the Indian indices

Read more »

Nearly 90 cities, counties in danger of extinction due to population decrease

gettyimagesbank Nearly 90 small cities and counties that are in danger of extinction due to population decrease have been designated as “depopulation areas” for intensive support from the central government, ... Read more »

89 cities, counties, wards designated as depopulation areas

Minister of the Interior and Safety Jeon Hae-cheol announces the designation of 89 cities, counties and wards as depopulation areas in a news conference in Seoul on Monday. (Yonhap)Nearly 90 ... Read more »

Seoul closely monitoring N. Korean leader's increased messages toward US: ministry

North Korean leader Kim Jong-un speaks at a lecture to commemorate the 76th founding anniversary of the ruling Workers’ Party last Sunday, in this photo released by the North’s official ... Read more »

New virus cases hit 3-month low

Health workers take samples for COVID-19 at a makeshift testing center near Seoul Station in central Seoul, Oct. 18. Yonhap South Korea’s daily coronavirus cases dropped to the lowest level ... Read more »

Asia jittery ahead of China GDP; oil high

Asian shares are on edge ahead of the release of Chinese economic data for the third quarter, as investors fret about the health of the world's second-largest economy even as ... Read more »

Facebook to hire 10,000 people in EU to build 'metaverse'

Attendees walk past a Facebook logo during Facebook’s F8 developer conference in San Jose, Calif., April 30, 2019. Facebook on Monday announced plans to hire 10,000 people in the European ... Read more »

S. Korea to start deploying new hand-held mine detector next year

This image, provided on Monday by the Defense Acquisition Program Administration, shows a newly developed hand-held mine detector. (Defense Acquisition Program Administration)South Korea plans to start deploying a new military ... Read more »

Lee to appear at parliamentary audit amid snowballing development corruption scandal

This photo, provided by the National Assembly’s photo press corps, shows Gyeonggi Gov. Lee Jae-myung speaking at the National Assembly in Seoul last Friday. (National Assembly Photo Press Corps)Gyeonggi Gov. ... Read more »

Busan's Ilgwang Beach becomes outdoor art gallery

“Narratives from the Hadal Zone” (2021) by Kim Kyung-hwa / Courtesy of the artist and Busan Biennale Organizing Committee By Park Han-sol Ilgwang Beach in Busan, one of the many ... Read more »

Key suspect in corruption-laden development scandal detained upon return from US

Nam Wook (C), a key figure in a sprawling land development scandal in Seongnam, Gyeonggi Province, is swarmed by reporters at Incheon International Airport, west of Seoul, on Monday, after ... Read more »

'Squid Game' draws attention to Jeju Island

Actress Jung Ho-yeon as Kang Sae-byeok in Netflix original series “Squid Game” / Courtesy of Netflix By Nam Hyun-woo The popularity of Netflix’s original series “Squid Game” is pushing up ... Read more »

Namkoong Min's fascinating makeover as elite spy agent

Actor Namkoong Min / Courtesy of MBC Lee Ha-nee emerges as rom com queen, creating rare rivalry in Friday-Saturday dramas By Kang Hyun-kyungDrama fans these days are faced with a ... Read more »

Wall St climbs on strong bank results

US stocks have risen as Goldman Sachs was the latest big bank to report strong results and better-than-expected retail sales eased worries about demand. The three major stock indexes were ... Read more »

China to keep up scrutiny of internet sector

This illustration file picture taken in Paris shows the logo of the US social network application Linkedin on the screen of a tablet. Microsoft on Oct. 14 said it will ... Read more »

Choyeon, Eunchae from 'Produce 48' to debut in new girl group bugAboo

K-pop girl group bugAboo / Courtesy of Ateam Entertainment By Dong Sun-hwa Choyeon and Eunchae, who made their names known through Mnet’s audition program “Produce 48” in 2018, will debut ... Read more »

Seoul expresses ‘deep regret' over Kishida's Yasukuni offering

A woman prays in front of a wooden plaque showing the name of Japan’s Prime Minister Fumio Kishida seen with a “masakaki” tree that he sent as an offering to ... Read more »

Tencent increasing investments in Korea amid China regulation

People pass by Tencent’s headquarters in Guangdong, China, on July 12. AFP-Yonhap By Kim Jae-heun China’s IT giant Tencent is investing more into the Korean game sector amid the Chinese ... Read more »

'Work Later, Drink Now' to follow three female friends

Actors Lee Sun-bin, from left, Han Sun-hwa, Jung Eun-ji, and Choi Si-won pose for pictures during the online press conference of the series “Work Later, Drink Now,” Friday. Courtesy of ... Read more »

Hyundai Motor aims to produce its own semiconductors

Hyundai Motor and Kia Corp. headquarters in Seoul / Courtesy of Hyundai Motor Group By Kim Hyun-bin Hyundai Motor Group is taking steps to advance beyond its traditional strength of ... Read more »

AhnLab's coding class for employees

An AhnLab employee and his son learn coding via a metaverse platform at the cybersecurity company’s headquarters in Pangyo, Gyeonggi Province, Saturday. AhnLab held the event for its employees and ... Read more »

Dollar set to continue rally against won

An electronic board in Hana Bank’s dealing room shows the slight fall of the won-dollar exchange rate, Friday. Yonhap Foreign exchange market predicted to stabilize next year By Lee Min-hyung ... Read more »

K-pop labels take strong action against internet trolls to protect their stars

K-pop girl group BLACKPINK / Courtesy of YG Entertainment By Dong Sun-hwa In the past, K-pop labels treated online trolls with some generosity. When their stars were attacked on false ... Read more »

Key figure in land development corruption scandal heads home from US for probe

Attorney Nam Wook, a key figure in a sprawling land development scandal in Seongnam, Gyeonggi Province, speaks with reporters at a Los Angeles airport on Sunday, before departing for South ... Read more »

Strategic alliance

Avatars of officials of Shinhan Bank, Shinhan Capital and software developer Galaxy Corp. pose for a photo on the metaverse, a virtual platform, after signing a memorandum of understanding on ... Read more »

Korean picture books win international illustration awards

The covers of Lee Myung-ae’s “Tomorrow Will Be a Sunny Day,” left, and Kim Hyo-eun’s “I am the Subway” / Courtesy of Munhakdongne Publishing By Park Han-sol Two critically-acclaimed Korean ... Read more »

[ANALYSIS] Korea under pressure to mediate chip issue

U.S. President Joe Biden speaks as he participates in the virtual CEO Summit on Semiconductor and Supply Chain Resilience from the Roosevelt Room at the White House in Washington, U.S., ... Read more »

Despite opposition, KDB plans to push ahead with HHI-Daewoo deal

Korea Development Bank Chairman Lee Dong-gull speaks at a government audit held at the National Assembly, Friday. Korea Times photo by Bae Woo-han By Kim Hyun-bin State-run Korea Development Bank ... Read more »

Seoul, Washington almost ready for humanitarian aid to Pyongyang: nuclear envoy

Noh Kyu-duk, South Korea`s chief nuclear envoy, speaks with reporters upon his arrival at the Washington Dulles International Airport on Saturday. (Yonhap)South Korea and the US are almost ready in ... Read more »

Vice FM leaves for Europe for senior-level talks on security, diplomatic ties

This photo shows First Vice Foreign Minister Choi Jong-kun. (South Korea’s Foreign Ministry)South Korea’s first vice foreign minister left for London on Sunday for talks with British officials on bilateral ... Read more »

These 8 F&O stocks look good for next few sessions, upside momentum to continue

What is open interest and PCR data indicating? Before we go to what is Open Interest and PCR data indicating, let us first understand what is Open Interest and Put ... Read more »

DAILY VOICE | Give decent weightage to these 5 sectors while transforming portfolio: Vinod Nair of Geojit

Vinod Nair, Head of Research at Geojit Financial Services feels travel & tourism, hotel and aviation sectors are going to witness huge demand as the tourism sector re-opens. “My best ... Read more »

IAEA chief vows close consultations with S. Korea over Japan's Fukushima water release plan

This photo shows Ham Sang-wook (L), Seoul’s deputy foreign minister for multilateral affairs, speaking with Rafael Grossi (R), Director General of the International Atomic Energy Agency (IAEA) during a meeting ... Read more »

Kishida sends offerings to controversial Yasukuni Shrine: report

This photo shows Japanese Prime Minister Fumio Kishida holding a press conference in Tokyo on Thursday.(AFP-Yonhap)Japanese Prime Minister Fumio Kishida on Sunday sent offerings to a controversial war shrine for ... Read more »