Coinone Launches First Bitcoin Staking Service in South Korea
In a noteworthy development for the South Korean cryptocurrency landscape, Coinone has unveiled a pioneering Bitcoin staking service, marking the nation’s first of its kind. Announced on Friday, this innovative offering allows users to earn rewards while still retaining control of their Bitcoin assets, without the need for locking them up. According to a report by the Korea Times, the staking is facilitated through the Babylon protocol, a blockchain solution dedicated to enhancing the security of decentralized networks.
Key Features and Promotional Event
A key feature of Coinone’s service is its flexibility, setting it apart from traditional staking models. Users can freely deposit, withdraw, or trade their Bitcoin at any moment during the staking term. To celebrate this launch, Coinone is hosting a promotional event running until September 7. Participants are encouraged to register for the event, accept the relevant terms, and invest at least 100,000 won (approximately $72) in Bitcoin to qualify for promotional rewards. The top ten purchasers by volume will share a total of 2 million won in Bitcoin rewards, while the remaining qualifying users will divide an additional 8 million won.
CEO’s Commitment and Staking Mechanism
Coinone’s CEO, Lee Seong-hyun, expressed the company’s commitment to providing a leading staking service at a time when the trend of holding Bitcoin for the long term is gaining traction worldwide. He underscored the necessity of offering secure and profitable options for investors seeking passive income.
Despite Bitcoin staking not being a native feature of the Bitcoin blockchain—since it operates on a proof-of-work protocol instead of proof-of-stake—Coinone leverages external platforms like Babylon, which permit users to delegate their Bitcoin for supporting security on staking-compatible chains. This mechanism allows them to earn rewards in native tokens of those protocols while keeping their Bitcoin assets liquid.
Regulatory Developments in South Korea
In another significant aspect of the South Korean crypto environment, the Financial Services Commission (FSC) recently imposed a halt on all crypto lending services among local exchanges until a proper regulatory structure can be established. This move comes amidst rising popularity in crypto lending, with platforms like Upbit and Bithumb previously offering borrowers the chance to access substantial loans against their digital assets. The FSC’s warning highlighted serious risks linked to these products, which were operating in a largely unregulated space. Notably, around 27,600 individuals had borrowed an estimated 1.5 trillion won (about $1.1 billion) shortly after the rollout of one lending platform.
As South Korea pivots towards more regulated practices in cryptocurrency adoption, authorities are beginning to ease restrictions on institutional trading and are in the process of approving the nation’s first spot cryptocurrency exchange-traded funds (ETFs). Furthermore, the current administration, led by President Lee Jae Myung, is working towards establishing a stablecoin framework tied to the Korean won—indicating a shift towards a more progressive stance on digital finance amidst regulatory tightening.
