Korean digital bank KBank has 70% of its deposits tied to cryptocurrency. The bank is majority-owned by telecoms firm KT. Upbit, the dominant Korean crypto exchange has a market share of more than 80% and uses KBank to validate customer identity and as an onramp.
While most Korean banks have nominal exposure to crypto, lawmaker Kim Hee-gon observed that “At this point, it isn’t an exaggeration to say that KBank has degenerated into Upbit’s private treasury,” local news outlet YTN reported.
It was suggested that regulators impose a 5% cap on bank exposure to crypto firms, particularly for digital banks.
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