Home News Bitcoin South Korean Exchange Bitthumb Renews Contract With Nonghyup Bank

South Korean Exchange Bitthumb Renews Contract With Nonghyup Bank

August 29, 2018 13:35
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Korea, (both- North and South) witnessed a lot of action this year, in the cryptocurrency and blockchain space. While one is taking baby steps into blockchain space (North), the other walked a fine line between clamping down and reinstating cryptocurrency exchanges (South).

Things seem to have taken a turn for the better, when cryptocurrency exchange Bitthumb announced that it would be making a comeback, with the help of a national bank, Nonghyup Bank, on Wednesday.

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According to a local daily publication, Naver, the exchange along with Nonghyup Bank will conclude a contract renewal service for the ‘real name virtual account issuance verification service’ between December 29 and 30 this year.

Apart from resuming trading, the exchange will also allow its traders to use their virtual names instead of real names. A senior official of the NACF said , “The consultation with Bitthumb is almost finished. ”

Late July, the contract that had existed between Nonghyup bank and Bitthumb, over signing up new users to exchange using false names had ended and they had not renewed their contracts until Wednesday. At the time of negotiations, the issuance of the new real name confirmation virtual account had been stopped , but when the new contract will kick into place , Bitthumb will issue the virtual name confirmation account with the bank. 

One of the major reasons why the renewal of this contract took so long is because of the disagreements between both the parties. The bone of contention was whether interest payments, on investor assets that are separate from the investor protection is chargeable or not. The exchange, according to the portal, said that the interest shouldn’t be paid “Because IT is an Asset held by  the company and the settlement of virtual currencies and the Bank of Nonghyup stipulated that IT would be difficult to pay interest Because the perennial investor’s funds is in an escrow account.”

Apart from this particular collaboration, other cryptocurrency exchanges and banks in South Korea are also following the same path. Upbeat , Coinone , and Korbit have renewed their contracts with IBK Industrial Bank of Korea , Nonghyup Bank and Shinhan Bank , respectively.

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