Clients of the market-leading cryptocurrency exchange in South Korea Upbit You will be affected by a possible three-day interruption during the Lunar New Year period as a banking partner K-Bank It moves its operations to a new headquarters.
South Korean banks – and companies across East Asia – will close their brick-and-mortar branches during the period starting on Monday, January 31 and ending on February 2. Although K-Bank is a new bank and has no physical branches when talking about physical branches, officials likely decided that a move during this period would be the least disruptive — although cryptocurrency traders may be begging for disagreement. Cryptocurrency markets, unlike their traditional cousins, operate 24/7.
Bank services will stop working from January 30 until the end of February 1.
Per Segye Ilbo, K-Bank will move the entire IT hub from Sangam district of Seoul through the city to a new location in Mokdong. K-Bank Upbit partners, providing all ramp on/off services. South Korean law states that all mandatory cryptocurrency exchange transactions are made via real-name documented bank accounts provided by a single bank – meaning that withdrawals and deposits in South Korean won are likely to be prohibited for three days.
In a sense, it appears that Upbit has been a victim of its own success in this regard. K-Bank stated that the massive influx of new customers necessitated the move. As Upbit has grown to become the leader in the local market over the past 12 months or so, K-Bank has found it difficult to keep pace with the demand for new accounts.
The bank has increased its users almost in the last year. At the end of 2020, K-Bank had less than 5 million account holders. By the end of 2021, it had fewer than 7.2 million customers.
Some media outlets have reported that Upbit may be trapped between 70%-80% of the domestic crypto market, and that its operator has already set its sights on overseas expansion into more competitive markets. Analysts also discussed an initial public offering, although the company has neither confirmed nor denied its intentions. Market specialists say the company is likely to float in New York, as it is too big for the local stock exchange.
At some point last year, the partnership caused an “emergency” in the “management” of K-Bank’s “loan-to-deposit ratio,” where loans, mortgages and other services fared far worse than crypto deposit and withdrawal services.
K-Bank explained that it made the decision to move its IT unit in order to “enhance the level of IT infrastructure,” the media outlet wrote, adding that “the number of customers has grown rapidly due to the recent launch of several new products and its partnership with Upbit.”
The largest shareholder in the new bank is the telecom giant KT.
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