Coinbit is set to become the fifth cyptocurrency exchange platform to serve trade in Korean currency upon completing all the necessary requirements under a new law in South Korea.

According to financial industry sources, an unidentified local bank has recently finalized internal procedures to open bank accounts for traders with Coinbit after deliberating several candidates for crypto partner.

Coinbit used to serve nearly one million users but the number of users has been shaved to below 100,000 as it had to suspend won-based trade at the end of September after failing to find a bank to service accounts after verifying identification of the users under the new and stricter anti-money laundering regulations.

Coinbit plans to register its Korean won-backed trading service with financial authorities once it receives a conformation on contract for account verification from the bank with a goal to get approval as early as within the year.

So far, four biggest crypto exchanges—Upbit, Bithumb, Coinone, and Korbit— have filed for registration upon finding partner banks. Upbit and Korbit have gained approval from the Financial Services Commission while Coinone and Bithumb are yet to receive a go-ahead.

Gopax and Gdac are said to be waiting for confirmation from banks, according to industry sources.

Korean crypto market has been witnessing “reverse premium” phenomenon for the first time in two months, with digital token prices trading lower than elsewhere around the world. On Tuesday, a bitcoin was priced 0.5 percent or 3.5 million won ($29.6 million) cheaper on Binance, the largest global exchange, compared to Upbit. A reverse premium has historically led to rally in crypto prices.

By Yoon Won-sup, Choi Keun-do and Lee Soo-min

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]