Media: South Korea May Scrap the “One Crypto Exchange — One Bank” Rule

• South Korea is reviewing banking restrictions for crypto exchanges and derivatives.
• Yes, they will get more freedom from financial institutions.
• In this way, the country’s regulators are preparing to deregulate the crypto market ahead of the launch of a framework law.

South Korea’s financial regulators are considering scrapping the “one crypto exchange — one bank” practice, which effectively requires each platform to work with only one banking partner. Local media reported this, citing sources familiar with interagency consultations.

According to the outlet, the discussions are being coordinated between the Financial Services Commission (FSC) and the Fair Trade Commission. Regulators are assessing whether the current model contributes to excessive market concentration ahead of preparations for the “Digital Assets” framework law.

Although the “one exchange — one bank” rule is not explicitly enshrined in legislation, it emerged in practice due to strict anti-money laundering (AML) requirements and customer identification procedures. As a result, crypto exchanges were forced to rely on exclusive partnerships with banks to provide fiat on-ramps and off-ramps.

According to journalists, the push to revisit the approach came from a government study titled “Analysis of the virtual asset trading market and assessment of the competitive impact of key regulations,” carried out by a consortium that included Dongguk University. 

The report noted that the exclusive banking partnership model may reinforce monopolization by limiting access to banking services for smaller or newer exchanges.

The researchers concluded that applying the same standards to platforms with different trading volumes and risk profiles is disproportionate. The document emphasized that “the Korean crypto-asset market denominated in won remains largely concentrated around one or two of the largest operators,” and under such conditions, liquidity and trading efficiency tend to work in favor of dominant players.

The report also proposed allowing the launch of cryptocurrency derivatives and digital asset transactions via corporate accounts. In the authors’ view, this could “change the market structure, attract new capital, and weaken the scale effect that sustains the existing oligopoly.”

A government official confirmed that options for easing regulation are being actively discussed: 

Financial authorities view the “Digital Assets” law as a way to integrate the crypto market into the legal framework while avoiding excessive pressure on market participants. At the same time, the issue of allowing foreign exchanges into the domestic market or enabling Korean platforms to expand abroad has been put on hold for now due to risks to national companies and the complexity of oversight.

Parliament is also showing readiness to ease the rules. A Democratic Party representative in the digital working group noted: 

The ruling party added that the debate over whether it makes sense to directly transplant stock market rules onto the crypto industry has been ongoing for years.

These steps come amid a recent easing of policy toward institutional investors. Earlier, South Korea lifted a nine-year ban on corporate investments in cryptocurrencies. Under the FSC’s new guidance, listed companies and professional investment firms can invest up to 5% of their equity in assets such as bitcoin and Ethereum.