South Korea’s Neobanks Join the Crypto Race: Kakao Bank and Toss Bank Expand Operations
In an exciting development for the cryptocurrency landscape, Kakao Bank and Toss Bank, two titans of South Korea’s neobanking sector, are poised to broaden their crypto and stablecoin offerings. A report from Yonhap’s Infomax has revealed that Kakao Bank is gearing up to enhance its partnership with the local cryptocurrency exchange, Coinone, signalling a strategic move into the evolving world of digital assets.
Why This Matters: A New Era for Crypto in South Korea
The implications of this announcement extend far beyond the walls of Kakao Bank. For years, South Korea has maintained a cautious stance toward cryptocurrencies, with consecutive governments enforcing stringent regulations that included a ban on domestic coin launches and limitations on corporate crypto investments. This regulatory environment has left banks on the outskirts of the crypto revolution.
However, with new leadership under President Lee Jae-myun, who advocates for a more progressive crypto policy, the landscape appears to be shifting. One of his campaign promises was the introduction of a Korean won-backed stablecoin, making the potential for a legislative breakthrough feel imminent. Kakao Bank seems ready to capitalize on this momentum, indicating that they are making “advanced preparations” to dive into the crypto space as soon as regulations allow.
Kakao Bank’s Strategic Moves in Crypto Development
As they navigate this promising landscape, Kakao Bank is actively researching market trends and regulatory changes within the cryptocurrency sector. Recently, the bank applied for 12 trademarks across three categories related to crypto:
- Crypto-related software
- Crypto financial transactions
- Crypto mining
This proactive approach illustrates Kakao Bank’s intention to establish itself as a major player in the upcoming crypto era.
Innovative Services: Merging Traditional Banking with Crypto
Kakao Bank is also innovating by introducing new services that link directly to Coinone. Customers can now use the Kakao Bank app to monitor the prices of cryptocurrencies in real time, as well as access their Coinone wallet balances in South Korean won (KRW). Furthermore, features that provide insights into the book value of cryptocurrency investments alongside gain and loss statistics are now integrated into the banking interface.
This partnership is fortified by an exclusive agreement with Coinone, ensuring that customers wishing to use the KRW market must bank with Kakao. International expansion may also be on the horizon for Kakao Bank, given its recent operating license acquisition in Thailand, a nation renowned for its high cryptocurrency ownership rate.
SK Telecom’s retail partner compensation plan stirs controversy https://t.co/IMFGqfX95N
— The Korea Times (@koreatimescokr) June 29, 2025
Toss Bank: Pioneering Stablecoin Initiatives
Not to be outdone, Toss Bank is making strides of its own. The institution has expressed interest in joining the Open Blockchain and DID Association (OBDIA), which was revived this year with a focus on stablecoins. With a notable roster of member banks—including financial giants like Shinhan Bank and Woori Bank—OBDIA is exploring the feasibility of institutionalizing stablecoins in South Korea.
Toss Bank’s strategy includes submitting 48 trademark applications relevant to stablecoins, with a spotlight on their own KRWTSB coin. This aligns with the overall sentiment in the financial community for safer and more regulatory-compliant investment avenues for crypto traders. As pressure mounts for regulatory updates, the Financial Services Commission (FSC) has highlighted the need for new legislation to safeguard user interests as retail investment in cryptocurrencies grows.
Korean police have arrested 32 Thai nationals on charges of smuggling methamphetamine and yaba into the country and distributing the drugs nationwide. https://t.co/9r1msA9XHq
— The Korea JoongAng Daily (@JoongAngDaily) June 30, 2025
Future Outlook: A Growing Crypto Ecosystem in South Korea
The landscape for cryptocurrency in South Korea is on the brink of transformation. With Kakao Bank and Toss Bank stepping up to the challenge, industry insiders are optimistic about the future. The introduction of stablecoins and the progressive approach to regulation could unlock significant market opportunities. As more neobanks engage with crypto, we may witness an explosion of innovation and competition in digital finance.
What do you think about these developments? Are we witnessing the dawn of a new financial era in South Korea? Join the conversation and share your thoughts below!