Coinone Launches South Korea’s First Bitcoin Staking Service Through Babylon Protocol

Highlights:

• Coinone has launched the first Bitcoin staking service in South Korea through the Babylon protocol.
• A promotional event for Coinone Bitcoin staking runs until September 7 with 10 million won in rewards.
• South Korea paused crypto lending but prepared ETFs and stablecoin rules, while Coinone pushed Bitcoin staking.

Coinone, a South Korean crypto exchange, announced that it has launched the first Bitcoin staking service in South Korea. The new service offers investors a new way to earn rewards by staking Bitcoin. The exchange introduced the product through the Babylon protocol, which secures decentralized networks by enabling users to delegate assets.

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Korean crypto exchange Coinone announced that it has launched the country’s first Bitcoin staking service

— WF (@WhaleFUD) August 29, 2025

In return for staking Bitcoin, participants get BABY tokens, which are the proprietary asset of the Babylon network. During the staking time, users of Coinone’s service have complete access to Bitcoin, unlike with previous models. At any moment, users are free to deposit, withdraw, or swap their assets.

According to Lee Seong-hyun, the product was created to encourage long-term bitcoin holdings. Coinone CEO explained that the exchange wants to provide a secure option that combines flexibility with opportunities for passive income. The service reflects growing demand for staking solutions, even though Bitcoin itself does not support staking natively because it uses a proof-of-work system.

Through Babylon, investors can delegate their Bitcoin to support networks that rely on staking. They, in turn, receive BABY tokens as rewards without losing ownership of their original holdings. This solution enables Coinone to add a feature that is not present in the base layer of Bitcoin and increase the range of products that this exchange offers to its retail and institutional customers.

Promotional Event Highlights Coinone’s Bitcoin Staking Rollout

Coinone paired the launch with a promotional campaign designed to attract early participants. The event runs until September 7 and offers reward pools for qualifying users. In order to take part, individuals need to buy Bitcoin worth at least 100,000 won. In addition, they have to agree to the staking terms and register an event code.

The exchange created a tiered reward system for participants. The top 10 buyers by trading volume will share 2 million won in bitcoin rewards, distributed according to their ranking. At the same time, all other qualified participants will share an additional pool of 8 million won in Bitcoin. This initiative encourages both large and small investors to take part in the new service. Coinone also highlighted that the campaign shows its interest in offering its users convenient choices as long as they seek rewards.

South Korea’s Market Faces Lending Restrictions Amid Innovation

The implementation of Bitcoin staking by Coinone is occurring as the financial sector in South Korea is experiencing major transitions. The risks associated with unregulated borrowing activities were cited by authorities when they recently forced domestic exchanges to cease crypto lending services.

South Korea suspends cryptocurrency lending. The FSC ordered local exchanges to halt crypto lending services, deemed legally unclear and risky. Exchanges must wait for new guidelines before resuming. pic.twitter.com/SXD5bMpwCa

— Beejorn.crypto – Bjorn Hardarson (@beejorn) August 24, 2025

Lending services had surged in popularity earlier this year. Meanwhile, crypto platform Upbit allowed borrowers to borrow as much as 80% of their holdings. Other exchanges quickly followed with similar programs, creating rapid growth in the sector.

The Financial Services Commission reported that 27,600 investors borrowed 1.5 trillion won through one platform within a single month. Officials said the activity created risks in the absence of a clear framework. As a result, they moved to curb lending while preparing broader reforms for the digital asset market. Regardless of the restrictions, the government keeps creating new avenues to adopt. South Korea is planning to establish a stablecoin framework tied to the Korean won and authorize the first spot crypto ETFs.