Three of South Korea’s five greatest banks, Woori, Kookmin (KB), and KEB Hana, have made it known that they are not interested in working with crypto exchanges, claiming the sector is “too risky” – a choice which will effectively jeopardize the way forward for even the nation’s main exchanges.
Last week, South Korean banks were set to audit crypto exchanges’ as part of their due diligence and risk assessment protocols for real-name banking contracts. After assessment, Woori, Kookmin and KEB Banks then decided that investing in crypto will bring more harm than good and they would rather not.
The media outlet quoted a senior KB official as stating:
“We may choose to work with crypto exchanges someday. But for now, as there is the risk of being involved in crime such as money laundering, it is becoming difficult for us to become involved. We are not currently considering working with exchanges.
Woori, meanwhile, told the same news agency that “other financial institutions may have similar thoughts” and added that the risk of “hacking and money laundering” outweighed the allure of the profits the bank may stand to make were it to partner with a crypto trading platform.