South Korea's new law will require banks to pay interest on deposits on cryptocurrency exchanges, which could severely impact KBank's profits. KBank currently has $3.60 billion in deposits from major cryptocurrency exchange Upbit, which represents more than 20 percent of its customers' balances. Under the new law, if the interest rate is set at 1 percent, KBank will have to pay about 50 billion won ($36 million) in interest, which is comparable to its current profits. The law will take effect in July 2024, and the timing is particularly unfavorable for KBank, which is preparing to go public. Upbit is the largest cryptocurrency exchange in South Korea, and other South Korean banks have no significant exposure to cryptocurrency deposits.