Crypto Exchange Interest Rates Set at 1% Under Investor Protection Act

IconCryptoNewsTerminal Staff19 Jul, 2024

cryptonews.jpg

Crypto Exchange Interest Rates Set at 1% Under Investor Protection Act

Domestic cryptocurrency exchanges in South Korea have decided to pay interest on deposits at an annual rate of around 1% (pre-tax basis) due to the full implementation of the Investor Protection Act. This move comes after the Investor Protection Act was fully implemented, prohibiting exchanges from engaging in quasi-receiving activities such as paying fees to customers. COINONE has set the interest rate for customer deposit fees at 1.0% per annum, while GOPAX has set it at 1.3%. UPBIT, BITHUMB, and KOVIT are also finalizing their fee rates in discussions with their partner banks. The decision to pay interest on deposits is seen as a way for exchanges to attract and retain customers in a competitive market. It is also expected to help stabilize the cryptocurrency market by providing a safe and convenient way for investors to store their assets.

Related News