New South Korean Law Requires Crypto Deposits to Pay Interest

Odaily News A new South Korean law will require banks to pay interest on deposits from cryptocurrency exchanges, which could severely impact KBank’s profits. KBank currently has $3.6 billion in deposits from major cryptocurrency exchange Upbit, which accounts for more than 20% of its customer balances. Under the new law, if the interest rate is set at 1%, KBank will need to pay about 50 billion won ($36 million) in interest, which is equivalent to its current profits. The law will take effect in July 2024, and the timing is particularly unfavorable for KBank as it prepares to go public. Upbit is the largest cryptocurrency exchange in South Korea, and other South Korean banks do not have significant exposure to cryptocurrency deposits.