K bank has put on hold a plan to set up an in-person consultation desk at Upbit Lounge, the offline customer center of cryptocurrency exchange Upbit, because talks with financial regulators have not been completed. The move has drawn market attention at a time when Upbit is seen as possibly switching its real-name account partner from K bank to Hana Bank.
Upbit recently completed a renovation of Upbit Lounge, located on the second floor of Mirim Tower in Yeoksam-dong, Gangnam district, Seoul, and has begun operating it on a soft-opening basis, according to financial industry sources on the 17th. The center is currently open on a limited basis to retail customers who need support, including consultations, with a formal opening scheduled for next month.
The newly refurbished Upbit Lounge does not include the K bank in-person consultation desk that had originally been planned. K bank had been pursuing a plan to install a dedicated desk at the lounge to help corporate clients open accounts. As recently as July, the bank said it was actually building the desk inside the lounge.
But as of the soft opening, the K bank desk has not been installed. K bank said it is holding off because preliminary consultations with financial regulators have not been wrapped up. Internet-only banks such as K bank are built on a business model of providing banking services remotely, without branches. For that reason, the bank said, operating a desk where its employees are stationed at a separate space like Upbit Lounge and serve customers face to face requires prior consultation with regulators.
"The cooperation between Upbit and Hana Bank covers broader areas such as stablecoins, and this suspension of the desk installation has nothing to do with speculation over a change in the partner bank," a K bank official said. "The plan to install the desk has not been scrapped. We are holding off until discussions with regulators are complete."
