Korean crypto exchange Coinone announced Friday that it has launched the country’s first Bitcoin staking service, allowing users to earn rewards without locking their assets.
Key Takeaways:
Coinone has launched Korea’s first bitcoin staking service using the Babylon protocol. The product allows full flexibility, with no lock-up period for deposits, withdrawals, or trades. A promotional event runs until Sept. 7, offering BTC rewards to participants based on purchase volume.The new product enables users to stake bitcoin through the Babylon protocol, a blockchain platform focused on securing decentralized networks, according to a report by the Korea Times.
In return, participants receive BABY tokens, the Babylon network’s native asset, while retaining full access to their bitcoin holdings.
Coinone Introduces Flexible Bitcoin Staking with No Lock-Up Period
Unlike traditional staking, Coinone’s model offers flexibility, users can deposit, withdraw, or trade their bitcoin at any time during the staking period.
To promote the launch, Coinone is running a special event through September 7. Participants must register an event code, accept the staking terms, and purchase at least 100,000 won (approximately $72) worth of bitcoin to be eligible.
The top 10 buyers by volume will split 2 million won in BTC rewards, while all other eligible participants will share an additional 8 million won pool.
“With long-term bitcoin holding emerging as a global investment trend, we aim to provide a leading staking service,” said Coinone CEO Lee Seong-hyun.
He emphasized the importance of enabling secure holding options that also allow users to earn passive income.
Bitcoin staking isn’t natively supported by the Bitcoin network, as it uses a proof-of-work system rather than proof-of-stake.
However, platforms like Coinone enable Bitcoin staking through external protocols such as Babylon, which allow users to delegate their BTC to support network security on staking-compatible chains.
In return, users earn rewards, typically in the protocol’s native token, while maintaining full access to their bitcoin without locking it up or converting it.
South Korea Orders Crypto Exchanges to Halt Lending Services
Last week, South Korea’s financial regulator moved to rein in risky lending practices in the digital asset sector, ordering local exchanges to suspend all crypto lending services until a proper regulatory framework is established.
Crypto lending services had surged in popularity since early July. Upbit introduced a program enabling users to borrow up to 80% of the value of their deposits in Korean won or digital assets, using Tether (USDT), Bitcoin, and XRP as collateral.
Rival Bithumb rolled out a similar product, offering loans worth up to four times the value of a customer’s holdings. Other local platforms quickly followed.
However, the FSC warned last month that the products operated in a regulatory gray zone and posed significant risks.
In its latest release, the regulator disclosed that roughly 27,600 investors borrowed 1.5 trillion won ($1.1 billion) in the first month of one company’s lending program.
The crackdown comes amid South Korea’s broader pivot toward regulated crypto adoption. Authorities are lifting restrictions on institutional trading and preparing to approve the country’s first spot crypto ETFs.
President Lee Jae Myung’s administration is also working on a stablecoin framework pegged to the Korean won, signaling a more open approach to digital finance despite the latest curbs.
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