Banks are cautious over opening virtual accounts for cryptocurrency exchanges and investors.

They maintain the cautious stance even after Financial Supervisory Commission Chairman Choi Jong-ku said this week that the government does not impose any restriction on banks in opening accounts with cryptocurrency exchanges and investors.

At the National Assembly committee, Choi said cryptocurrency exchanges could open virtual accounts with banks “as long as they have a strict mechanism to prevent the laundering of money and to protect investors.”
Following Choi’s statement, the Korea Blockchain Association issued a statement welcoming Choi’s comment.

However, the bankers are cautious. An Industrial Bank of Korea executive said, “Choi’s remark would not change our business with cryptocurrency exchanges.”  A KB Bank official said, “The government asked banks to open accounts with cryptocurrency exchanges only when banks ensure a system against money laundering and crime deals.” He said KB Bank had completed an infrastructure against money laundering and crime business. However, he said, “Our business with cryptocurrency exchanges would not change.” His statement indicates that KB Bank would continue to be super cautious in doing business with cryptocurrency

A Shinhan Bank official said, “It is quite sensitive to do business with cryptocurrency exchanges, and our bank would not resume business with them in the immediate future.”

In January, the Financial Supervisory Commission audited six banks for opening virtual accounts with cryptocurrency exchanges. The audit alerted banks, and these South Korean banks have either suspended or minimized business with cryptocurrency exchanges, including opening virtual accounts,