Banks are making less money from crypto exchanges as the crypto winter sets in.

Key Highlights :

1. The profits of banks that offer real-name bank accounts for virtual asset transactions in Korea were halved last year, in contrast to the continuous surge observed from 2019 to 2021.

2. This can be attributed to the market recession, which has affected the sales and operating profits of major cryptocurrency exchanges.

3. For instance, the price of Bitcoin, which surged to over 80 million won in Nov. 2021, plunged to 21 million in Dec. 2022.

     As the virtual assets market entered a crypto winter last year, the profits of banks that offer real-name bank accounts for virtual asset transactions in Korea were also halved. The amount of the banks' commission showed a downtrend last year, which was in contrast to the continuous surge observed from 2019 to 2021.

     The reason for the divergence was the change in the market conditions. In the early days of the market, banks were able to earn a large commission by facilitating the transactions. However, as the market went through a correction in late 2018 and early 2019, the demand for virtual assets decreased, and the commission earned by banks also decreased.

     However, as the market conditions improved in late 2019 and early 2020, the demand for virtual assets again increased, and the commission earned by banks also increased. This divergence in commission earnings is likely due to the fact that the banks were able to take advantage of the different market conditions.

     It is important to note that the commission earned by banks does not reflect the actual value of the transactions. The commission is simply a fee that the banks charge for their services.

     It is also important to note that the commission earned by banks does not reflect the actual value of the transactions. The commission is simply a fee that the banks charge for their services.

Continue Reading at Source : koreatimes