South Korea Reviews Crypto Exchange Banking Restrictions
South Korean regulators are reassessing the 'one exchange–one bank' model that has governed cryptocurrency trading platforms since 2021. The Financial Services Commission and Fair Trade Commission jointly initiated the review amid growing concerns about anti-competitive effects in the digital asset market.
The current system requires exchanges to maintain exclusive banking partnerships for fiat transactions—a de facto regulation born from AML compliance requirements. A government-commissioned study reveals this framework disproportionately disadvantages smaller exchanges, creating uneven access to banking infrastructure.
Market participants note the review could signal broader regulatory evolution as South Korea seeks to balance financial oversight with industry growth. The outcome may reshape competitive dynamics among domestic trading platforms and influence banking sector engagement with digital assets.
