Bithumb, a prominent South Korean crypto exchange, has recently announced a game-changing move that will allow its customers to open NongHyup Bank accounts directly through its mobile app. This development eliminates the need for customers to visit bank branches in person to sign up for real-name bank accounts before opening wallets on the Bithumb platform. This move is significant as South Korean law mandates that crypto exchanges must use verified wallet-linked accounts for fiat trading options, making it cumbersome for customers to download separate bank apps or visit bank branches in person.
By introducing the option to open non-face-to-face bank accounts through its platform, Bithumb aims to provide users with a more convenient environment for trading crypto assets. Moon Seon-il, the General Manager of Services at Bithumb, highlighted the benefits of this new service in enhancing the user experience and facilitating deposit and withdrawal transactions. This move is expected to bolster Bithumb’s position in the highly competitive South Korean crypto market, particularly in rivalry with Upbit, which has dominated the market with over 80% of domestic crypto trading market share through its partnership with neobank K Bank.
Bithumb has been vying for a larger market share by implementing strategies such as temporarily waiving commission fees on transactions in an attempt to surpass Upbit’s trading figures. Despite briefly exceeding Upbit’s trading volumes, Bithumb later reinstated commission fees. In a recent incident, South Korean regulators launched an investigation into a suspected attempt to manipulate the price of AVAIL, an altcoin, on Bithumb’s platform. However, Bithumb’s long-standing banking partner, NongHyup, remains committed to utilizing NFTs for their future business expansion, signaling a growing interest in blockchain technology among domestic banks.
The introduction of the non-face-to-face deposit/withdrawal account opening service by Bithumb marks a significant milestone in enhancing user convenience and streamlining the process of setting up real-name bank accounts for crypto trading. With the growing demand for seamless and user-friendly crypto trading platforms, Bithumb’s strategic move is poised to strengthen its competitive position in the South Korean market. As the crypto industry continues to evolve rapidly, exchanges like Bithumb are exploring innovative ways to attract and retain customers while navigating regulatory challenges and market dynamics.
