The ABIT, Bithumb platform and three other platforms, have paid a total amount of 120.26 billion won since July 2024.
The digital currency trading platforms in South Korea have paid interest in their customers for $ 87 million on their cash deposits in the past year. According to the South Korean news agency (via the dam), the data on the payment process of these services was provided by the Financial Supervisory Service on July 27 after the Deputy Party of the Democratic Party (Heo Young), member of the National Assembly Committee of the National Assembly, submitted a request to guarantee freedom of information.
Crapeto platforms in South Korea compete for interest costs
The data show that the country’s five trading trading platforms have pushed their customers with a total value of 120.26 billion winners since the launch of the Act on the Protection of Virtual Assets in July of last year.
The law stipulates that commercial platforms – such as Upbit, Bithumb, Coinone, Korbit and Gopax – must be paid for their customers on their cash deposits, after the platforms have generally made it possible to interest a symbolic amount of 0.1% per year before the issue of this law.
However, this law has led to the intensification of competition between the platforms that have started to run to attract new customers by providing very high interest rates that are paid on a quarterly basis.
This competition reached its culmination by announcing the Bithumb platform to provide an interest rate of 4%, but it changed its position after only 6 hours. After these developments, platforms began to reduce their interest rates, and at the end of last June, the Upbit, Bithumb, Coinone and Korbit platforms provided 2.1%, 2.2%, 2.0%and 2.1%respectively. On the other hand, the GOPAX platform determined its advantage at only 1.3%, while this rate remained much higher than the usual interest rates offered by most commercial banks, which are 1%.
Do interest rates soon decrease?
The platforms have responded-since then-to Korea’s bank decision to reduce basic interest rates, and the Korbit platform reduced its user fees to 1.9% this month, and the Quewan platform (Coinone reduced the interest rate to 1.77% from next month.
For its part, a spokesperson for the financial control service said that the regulatory authorities wanted to “create a standard to calculate interest payments that do not undermine the competitive system”. Hugh also expressed that the law provides a “security network” for users, while many capital is always “concentrated on specific platforms”.
These comments come after the accusations indicating that the Upbit platform was authorized to monopolize the world of trading platforms because it controls more than 60% of the market share. On this subject, the deputy added:
“We will continue to improve the system to protect users and create a healthy and competitive environment.”
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