Bithumb's Strategic Shift to KB Kookmin Bank

In a significant move, Bithumb, one of South Korea's leading cryptocurrency exchanges, has announced its transition from NH Nonghyup Bank to KB Kookmin Bank for currency deposits and withdrawals, effective March 24. This change marks a pivotal moment in Bithumb's operational strategy, aiming to enhance user experience and attract new customers.

Service Suspension for Seamless Transition

To facilitate this transition, Bithumb will temporarily suspend all services for 10 hours and 30 minutes from 1:30 AM to 11 AM on the transition day. Post-transition, all virtual asset trading deposits and withdrawals on Bithumb must be conducted through a KB Kookmin Bank account, streamlining the process for users.

Pre-Registration and Market Impact

Anticipating the shift, Bithumb initiated pre-registration for KB Kookmin Bank accounts on January 20, with an account opening desk set up at the Bithumb Lounge Gangnam branch on March 18. This partnership is expected to bolster Bithumb's domestic market share, currently at 20-30%, amidst stiff competition from Upbit, the market leader.

Competitive Landscape and Future Prospects

The move has prompted competitors like Korbit to strengthen their bank collaborations, offering promotions to attract users. Additionally, Bithumb's partnership with KB Kookmin Bank could influence the virtual asset market entry strategies of Hana Bank and Woori Bank, potentially reshaping the competitive landscape.