Banks push ahead with crypto exchange partnerships despite reputational risks

Korean banks are doubling down on partnerships with cryptocurrency exchanges despite lingering reputational risks from exchange-related incidents, as tighter household debt controls and lending curbs squeeze loan growth and push lenders to seek new profit streams, industry officials said Friday. A number of commercial and internet banks are already tied to major platforms: K Bank with Upbit, KB Kookmin Bank with Bithumb, KakaoBank with Coinone, Shinhan Bank with Korbit and Jeonbuk Bank with GOPAX. These alliances persist despite concerns over potential fallout from exchange mishaps. Even after an unprecedented incident at Bithumb last month — where 620,000 bitcoins, worth about 60.76 trillion won ($40.3 billion) at the time, were mistakenly credited to users — KB Kookmin Bank opted to maintain its partnership with the country’s second-largest cryptocurrency exchange, renewing the contract for another six months. While primary liability for such incidents lies with the exchanges, regulators could still scrutinize partner banks’ internal controls and their handling of customer pro

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