Bithumb, South Korea's second-largest cryptocurrency exchange, has divested NongHyup Bank in favor of Kookmin Bank as part of its efforts to tap into the mainstream market.

According to a report by L Korea Times It's January. 13, Beethumb The bank will change its deposit and withdrawal service provider bank from NH NongHyup Bank to KB Kookmin Bank starting March 2025.

South Korea The Financial Intelligence Unit, the country's financial watchdog, recently approved the exchange's request to change partner banks. According to the report, Bithumb's partnership with Nonghyup will end on March 23. Under South Korean law, cryptocurrency exchanges are only allowed to have one partner bank to facilitate transactions in Korean won.

As a result, investors who want to trade virtual assets on Bithumb must open an account at Kookmin Bank using their real name and link it to their Bithumb account. They will no longer be able to use NongHyup Bank to trade on Bithumb starting March 24 at 11:00 AM KST.

On the other hand, users can start linking their Kookmin Bank accounts on the same day, starting January 20 at 09:00 AM KST, according to a Bithumb official who added that more details on how to do so will be provided in a separate notice.

Bithumb CEO Lee Jae-won thanked NongHyup Bank for its long partnership with Bithumb and assured users that the cryptocurrency exchange will ensure a smooth transition, with the addition of corporate accounts from Kookmin Bank.

“Going forward, the two companies will make every effort to ensure the healthy and stable growth of the virtual assets market,” Li said.

Bithumb's decision to switch partner banks from NongHyup Bank to Kookmin Bank is believed to stem from the cryptocurrency exchange's desire to expand its market reach, specifically towards younger users.

According to annual reconnaissanceKookmin Bank was ranked as the second most popular bank among South Koreans in their 20s, trailing only KakaoBank, which has its origins in the social messaging app KakaoTalk.

Last September, Kookmin Fired The “So Young” discount card program, which offers special discounts to businesses favored by teens.

In addition, Kookmin Bank is one of the four largest banks in South Korea, along with Shinhan Bank, Hana Bank, and Woori Bank. At the time of writing, Korbit is the only other cryptocurrency exchange in South Korea to have a partnership with one of the big four banks, Shinhan Bank.