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Coinone Bitcoin staking has made history in South Korea, with the exchange becoming the nation’s first to launch a Bitcoin staking service through the Babylon protocol.
The move marks a breakthrough for the country’s crypto sector, enabling users to earn staking rewards on BTC without locking up their assets — effectively blending Bitcoin’s proof-of-work foundation with proof-of-stake-style yields.
Unlike traditional staking models, Coinone Bitcoin staking offers full flexibility. Users can deposit, withdraw, or trade their Bitcoin at any time during the staking period, eliminating the restrictions often associated with crypto staking.
“Flexibility is crucial to user adoption,” said Kim Ji-hoon, a Seoul-based blockchain analyst.
“By allowing withdrawals at any time, Coinone is lowering the barrier for retail investors to explore staking without the fear of illiquidity.”
To celebrate the rollout of Coinone Bitcoin staking, the exchange has launched a special event running through September 7.
Participants who register with an event code, accept staking terms, and purchase at least 100,000 won ($72) worth of Bitcoin will qualify for bonus rewards.
The top 10 buyers by trading volume will share 2 million won in BTC rewards, while all other eligible participants will split an additional 8 million won prize pool.
This promotion is designed to attract both seasoned traders and newcomers to try the new staking service.
Bitcoin itself cannot natively support staking, as it operates under a proof-of-work consensus.
However, Coinone has integrated with the Babylon protocol, which enables external staking opportunities.
Through this setup, users delegate their BTC to Babylon-compatible networks, helping secure those chains.
In return, participants earn BABY tokens, the protocol’s native asset, all while keeping their Bitcoin liquid and accessible.
“Babylon’s partnership with Coinone highlights a broader trend of bringing proof-of-stake benefits to Bitcoin holders,” said David Tse, co-founder of Babylon.
“We believe this innovation will reshape how BTC can be used in decentralized ecosystems.”
The launch of Coinone Bitcoin staking comes just as South Korea’s Financial Services Commission (FSC) ordered local exchanges to suspend risky crypto lending services.
Regulators raised concerns after products offered by platforms like Upbit and Bithumb allowed users to borrow up to four times their holdings.
In July alone, over 27,600 investors borrowed nearly 1.5 trillion won ($1.1 billion) through these lending programs.
The FSC deemed them a regulatory “gray zone” and halted operations pending stricter oversight.
Despite the crackdown, experts see Coinone’s Bitcoin staking as aligned with Korea’s push toward regulated digital asset adoption.
The government is preparing to approve the first spot crypto ETFs and laying groundwork for a stablecoin pegged to the won.
By introducing Coinone Bitcoin staking, the exchange positions itself as a first mover in Korea’s evolving crypto ecosystem.
While competitors scramble to adapt to regulatory headwinds, Coinone has rolled out a product that complies with existing frameworks while innovating for growth.
“Coinone has seized the moment,” said Lee Min-seok, CEO of Seoul Digital Asset Consulting.
“With lending restricted, staking provides an alternative income stream for investors, and Coinone’s flexible model could become a blueprint for other exchanges.”
For Korean Bitcoin holders, Coinone Bitcoin staking represents a rare opportunity: earn rewards from BTC holdings without converting to other tokens or locking assets for long periods.
The blend of flexibility, liquidity, and promotional incentives could spark wider adoption in Korea’s competitive exchange market.
As digital finance continues to evolve, Coinone’s pioneering move signals that Bitcoin utility is expanding beyond trading and holding.
If successful, it could trigger a wave of similar offerings across Asia and beyond.
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