Large Korean banks stop “credit card credits exchange bitcoin” service

nBankruptcy commentary: After the South Korean government announced some emergency regulatory measures against cryptocurrencies, many South Korean banks began to gradually withdraw from this emerging field and avoid direct participation in cryptocurrency-related activities. The notable move is that Shinhan Bank and Kookmin Bank have already decided to stop their services of “credit card redemption for bitcoin” in the middle of next January. This news seems to indicate that the South Korean government may as soon as possible clear its comprehensive encrypted currency regulation.n
nTranslation: Inan
Large Korean banks stay away from bitcoinn
It is reported that two large Korean banks announced this week that they will stop their services of “credit card redemption for bitcoin”. Shinhan Bank will stop this service from Jan. 15, and Kookmin Bank from Jan. 22. The media revealed that the two banks have partnerships with Coinplug, the cryptocurrency exchange, whose credit card points allow Bitcoin to be exchanged on Coinplug.n
Bank reward department to explainn
Shinhtar Bank’s rewards division is called “Shinhan Fan Club,” allowing customers to accumulate and use points using Shinhan credit cards. When customers use credit cards with Shinhan Bank’s seven branches, they earn points.n

The Kookmin Bank also has a similar rewards unit, and its service also allows customers to accumulate points and spend on credit cards at seven of its branches. In its report, the Korea Times pointed out that “customers can earn bonus points by spending on these seven companies and make direct use of points and cash in stores where credit cards can be used.”n
Both banks have partnered with Coinplug to allow their credit card points to be converted into bitcoin.n

Urgent regulation prompted the withdrawal of South Korean banks in the area of ​​cryptocurrenciesn
Earlier this month, the South Korean government announced an emergency regulatory measure against cryptocurrencies. According to the Yonhap News Agency, Choi Hong-sik, head of the Korea Financial Supervisory Authority,n
n”We will prohibit financial institutions from directly entering the virtual money market or engaging in related transactions.”n
nSince he showed that the government wants to prohibit financial services firms from trading or opening stores directly in the cryptocurrency market, banks are beginning to stop serving their cryptocurrency-related services one by one.n
Many large banks have stopped issuing virtual currency accounts required for such transactions to cryptocurrencies.n
In September, a service that allowed credit card purchases of cryptocurrencies at Bithumb, the largest Bitcoin exchange in the country, was stopped. At that time, South Korean financial authorities stated that “such services may be exploited by criminals using fake credit cards.”n

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